Applied Digital Issues $53.2 Million Convertible Preferred Stock to Advance HPC Data Center Project and Accelerate Growth

Core Viewpoint - Applied Digital Corporation has announced a private financing arrangement, issuing $53.2 million in convertible preferred stock for net proceeds of $50 million, aimed at supporting growth initiatives and expansion plans in the high-performance computing (HPC) sector [1]. Financing Details - The convertible preferred stock has a stated value of $1,000 per share and an interest rate of 8%, payable in kind (PIK) or cash [1]. - The investor received 53,191 shares, with 3,191 shares representing a 6% original discount [1]. - Upon shareholder approval, the preferred stock can be converted into common stock at an initial conversion price of $7.00 per share, which is over 80% premium to the latest common stock price [1]. Use of Proceeds - The proceeds from this investment will be utilized to fund various growth initiatives across the company's business segments, particularly to support the ongoing Ellendale HPC buildout and finalize a long-term hyperscaler lease [1]. Company Overview - Applied Digital designs, develops, and operates next-generation data centers across North America, focusing on providing digital infrastructure solutions for the rapidly growing HPC industry [4].