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

Core Insights - Applied Digital Corporation has entered into a private financing agreement, issuing a $42,131,579 unsecured convertible debenture with a five percent original issue discount and a term of 54 weeks [1] - The proceeds from this financing will be used to advance the construction of the HPC data center in Ellendale, North Dakota, highlighting the company's commitment to project advancement [2] Financing Details - The convertible debenture has a conversion price set at the lower of $8.00 or 95% of the lowest daily volume weighted average price of the company's common stock over 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 five percent of the previous thirty days' trading value [1] - The company may prepay the note if its common stock trades below $8.00 or after the thirtieth trading day following the effectiveness of the registration statement for the resale of the underlying shares [1] 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 (HPC) industry [4]