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Applied Digital Corporation - APLD STOCK NEWS

Welcome to our dedicated page for Applied Digital Corporation news (Ticker: APLD), a resource for investors and traders seeking the latest updates and insights on Applied Digital Corporation stock.

Applied Digital Corp designs, develops and operates next-generation datacenters across North America to provide digital infrastructure solutions to the rapidly growing high-performance computing industry. The company recently entered into a private financing agreement with a single investor where it issued a $42,131,579 unsecured convertible debenture. The debenture bears no interest and has a term of 54 weeks.

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Applied Digital has appointed Chris Jackson as the new Senior Vice President of Operations. Jackson brings over 20 years of experience in managing critical project operations, having held senior roles at Stream Data Centers and Vantage Data Centers. In his new position, Jackson will oversee development and operational activities, including security, safety, reliability, engineering, customer experience, and compliance. His appointment aims to drive operational efficiency and scalability at Applied Digital, leveraging his extensive background in strategic operational oversight and large-scale data service management. Jackson's experience includes managing Amazon Web Services' largest availability zone, ensuring 99.999% availability across 1200MW of IT resources. Applied Digital hopes Jackson's expertise will bolster its position as a leader in next-generation data centers and high-performance computing solutions.

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CIM Group has committed an initial $125 million loan to Applied Digital, with potential expansion up to $200 million, to support the construction of a High-Performance Computing (HPC) campus in Ellendale, North Dakota. Applied Digital, a firm specializing in next-generation digital infrastructure, started building the first 100 MW, 342,000-square-foot data center in October 2023. The campus has a future capacity exceeding 600 MW. Applied Digital has also signed an LOI with a U.S.-based hyperscaler for a 400 MW capacity lease. This partnership aims to establish Applied Digital as a leader in HPC data centers, leveraging CIM Group's expertise in bespoke credit solutions and commercial real estate development.

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Applied Digital (Nasdaq: APLD) has secured $125 million in private financing with an option to expand up to $200 million, aimed at funding the construction of its High-Performance Computing (HPC) data center in Ellendale, ND. The deal, backed by CIM Group, includes a promissory note with a 12% annual interest rate and a three-year term. The agreement also issues warrants for 6,300,449 shares at a strike price of $4.8005, with an additional 2,964,917 shares potentially available. The funds will help Applied Digital finalize its data center buildout, positioning it as a leader in digital infrastructure for AI.

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On May 24, 2024, Applied Digital announced a $42.1 million unsecured convertible debenture to advance its HPC data center project in Ellendale, North Dakota. The debenture bears no interest, has a 5% original issue discount, and a 54-week term. Its conversion price is the lower of $8.00 or 95% of the lowest daily volume-weighted average price during the five days before conversion. If below $8.00, conversion is capped at $16 million per month. The debenture is prepayable if the stock trades below $8.00. The proceeds will finance construction advancements, with the Investor agreeing not to short the stock. Legal counsel was provided by Lowenstein Sandler LLP.

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Applied Digital (Nasdaq: APLD) announced its participation in multiple upcoming investor conferences, including the 19th Annual Needham Technology & Media Conference, 24th Annual B. Riley Institutional Investor Conference, and 21st Annual Craig-Hallum Institutional Investor Conference. The company will present at these events and hold one-on-one meetings with investors, showcasing its next-generation digital infrastructure designed for High-Performance Computing (HPC) applications.

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Applied Digital (Nasdaq: APLD) announced the appointment of Todd Gale as Chief Development Officer. Gale, with over 45 years of industry experience, will lead the company's datacenter design strategy, focusing on liquid cooling systems, power systems design, and data hall infrastructure at the company's HPC datacenter campus in Ellendale, North Dakota.

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Applied Digital (Nasdaq: APLD) appoints Ella Benson as an independent director on its Board of Directors, effective May 6, 2024. Benson, with over a decade of experience in financial services, will also serve as the Chairperson of the Nominating and Governance Committee. Her appointment is part of a Cooperation and Standstill Agreement with Oasis Management Company. The agreement includes restrictions on Oasis' stock ownership and activities during Benson's tenure on the Board.

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Applied Digital (Nasdaq: APLD) reported financial results for the fiscal third quarter ended February 29, 2024, with total revenue of $43.3 million and an adjusted EBITDA loss of $2.3 million. The company strengthened its balance sheet with $160 million in asset sales and financing transactions. Operational highlights include an LOI with a US-based hyperscaler for a 400 MW capacity lease and progress in restoring Ellendale's capacity. Despite challenges from outages, the HPC and Cloud Services sectors show growth.
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Applied Digital (Nasdaq: APLD) reschedules fiscal third quarter 2024 earnings conference call to April 11, 2024, due to a scheduling issue. Financial and operational results for the quarter ended February 29, 2024, will be disclosed after the market closes. The management will present prepared remarks and engage in a Q&A session.
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Applied Digital (APLD) secures $50 million unsecured convertible debenture in private financing agreement to advance construction of HPC data center in North Dakota. The company plans to use the funds from the financing and the sale of the Garden City facility for project development. The Investor has restrictions on conversion and shorting the stock, ensuring stability. Northland Capital Markets and Lowenstein Sandler LLP facilitated the financing process.
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FAQ

What does Applied Digital Corp do?

Applied Digital Corp designs, develops, and operates next-generation data centers.

What recent financing agreement did Applied Digital Corp enter into?

The company recently entered into a private financing agreement where it issued a $42,131,579 unsecured convertible debenture.

What is the focus of Applied Digital Corp's digital infrastructure solutions?

The company focuses on providing digital infrastructure solutions to the rapidly growing high-performance computing industry.

What is the term of the recently issued convertible debenture by Applied Digital Corp?

The convertible debenture has a term of 54 weeks.

Who are the Investor Relations Contacts for Applied Digital Corp?

Matt Glover or Alex Kovtun from Gateway Group, Inc. can be contacted at (949) 574-3860 or APLD@gateway-grp.com.

Who are the Media Contacts for Applied Digital Corp?

Brenlyn Motlagh or Diana Jarrah from Gateway Group, Inc. can be contacted at (949) 899-3135 or APLD@gateway-grp.com.

What is the conversion price for the note issued by Applied Digital Corp?

The conversion price for the note is the lower of $8.00 and 95% of the lowest daily volume weighted average price of the company’s common stock.

What limitation does the Investor have for converting the note issued by Applied Digital Corp?

Below $8.00, the Investor is limited to converting no more than $16.0 million per month in the aggregate across all convertible debentures held.

Can the company prepay the note issued by Applied Digital Corp?

The company may prepay the note at any time that the company’s common stock trades below $8.00 or the thirtieth trading day after the registration statement registering the resale of the note’s underlying shares becomes effective.

Who is CIM Group and what is their relation to Applied Digital Corp?

CIM Group is a leading investment firm and alternative asset manager with a focus on creating value in real estate and infrastructure projects. They are not directly related to Applied Digital Corp but provide valuable investment insights.

Applied Digital Corporation

Nasdaq:APLD

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