Applied Digital Issues Unsecured Convertible Debenture to Advance HPC Data Center Project in Ellendale, North Dakota

Core Viewpoint - Applied Digital Corporation has entered into a private financing agreement, issuing a $42,131,579 unsecured convertible debenture to a single investor, aimed at advancing its HPC data center project in North Dakota [1][2]. Financing Details - The convertible debenture has no interest, an original issue discount of 5%, and a term of 54 weeks [1]. - The conversion price is set at the lower of $8.00 or 95% of the lowest daily volume weighted average price of the company's common stock during the five trading days prior to conversion [1]. - The investor is limited to converting no more than $16.0 million per month, which is approximately 5% of the previous thirty days' trading value [1]. Project Utilization - The net proceeds from the financing will be used to support the construction phase of the HPC data center in Ellendale, North Dakota, emphasizing the company's commitment to project advancement and timely fulfillment of obligations [2]. Legal and Regulatory Aspects - The securities issued have not been registered under the Securities Act of 1933 and cannot be offered or sold in the U.S. without registration or an exemption [3]. - The company has agreed to file a resale registration statement with the SEC for the shares of common stock issuable in connection with the offering [3]. Company Overview - Applied Digital designs, develops, and operates next-generation data centers across North America, focusing on providing digital infrastructure solutions for the high-performance computing industry [4].