Globenewswire·2025-12-29 21:45Core Viewpoint - Applied Digital and EKSO Bionics announced a proposed business combination to form ChronoScale Corporation, aimed at creating a focused GPU platform for next-generation AI workloads, addressing the growing demand for GPU-accelerated cloud infrastructure [1][2]. Group 1: Proposed Transaction Details - The proposed transaction involves merging Applied Digital's cloud computing business with EKSO, resulting in ChronoScale, which will focus on delivering high-performance compute solutions tailored for AI workloads [1][2]. - Upon completion, Applied Digital is expected to own approximately 97% of the combined entity, with both Applied Digital Cloud and EKSO continuing to operate independently [3]. Group 2: Strategic Rationale - The separation of the accelerated compute platform from Applied Digital's data center operations will allow both businesses to scale independently and pursue distinct growth strategies [2]. - ChronoScale is designed for customers needing predictable performance and rapid deployment, without the limitations of generic cloud environments [2]. Group 3: Financial Performance - Applied Digital Cloud generated approximately $75.2 million in revenue over the twelve months ending August 31, 2025, indicating strong demand for dedicated accelerated compute services [4]. Group 4: Future Outlook - The proposed transaction is expected to close in the first half of 2026, pending customary due diligence and regulatory approvals [6]. - ChronoScale aims to leverage Applied Digital's existing infrastructure to enhance deployment timelines and reduce execution risks as GPU demand increases [5].