---
schema_version: "secwatch.filing_event.v1"
accession: "0001144879-23-000074"
form_type: "8-K"
ticker: "APLD"
cik: "0001144879"
company_name: "Applied Digital Corp."
filed_at: "2023-02-21T23:59:59+00:00"
generated_at: "2026-06-19T06:27:33.822394+00:00"
event_type: "debt"
sentiment: "neutral"
materiality_score: 0.6
calibrated_materiality_score: 0.6
confidence: "high"
source: SEC EDGAR
---

# Applied Digital secures $20M loan for Ellendale data center expansion; creates Series E Preferred Stock

## Summary
- $20M term loan from Starion Bank at 7.48% fixed, matures Feb 3, 2028, secured by Ellendale Facility.
- Loan proceeds to fund expansion of next-generation data center near Ellendale, North Dakota.
- Created 5M shares of Series E Preferred Stock with 8% annual dividend, $25 stated value, and optional redemption features.
- Preferred stock dividends payable in cash or common stock, subject to 18.8M share cap without shareholder approval.
- Company guaranteed the loan via unlimited corporate guaranty; loan also secured by assignment of hosting agreements.

## SEC filing metadata
- accession: 0001144879-23-000074
- form_type: 8-K
- ticker: APLD
- cik: 0001144879
- company_name: Applied Digital Corp.
- filed_at: 2023-02-21T23:59:59+00:00
- event_type: debt
- sentiment: neutral
- materiality_score: 0.6
- calibrated_materiality_score: 0.6
- confidence: high
- sec_items: 1.01, 5.03, 9.01
- EDGAR index: https://www.sec.gov/Archives/edgar/data/1144879/000114487923000074/0001144879-23-000074-index.htm
- EDGAR primary document: https://www.sec.gov/Archives/edgar/data/1144879/000114487923000074/apld-20230214.htm

## Machine-readable alternates
- HTML: https://secwatch.observer/filing/0001144879-23-000074
- JSON: https://secwatch.observer/filing/0001144879-23-000074.json
- Plain text: https://secwatch.observer/filing/0001144879-23-000074.txt

## Key facts
- Governance Changes
  Applied Digital Corp.: Filed Certificate of Designation for Series E Preferred Stock, establishing its rights, privileges, preferences, and restrictions (effective 2023-02-14).
  - Change: charter amendment
  - Effective: 2023-02-14
  source text: On February 14, 2023, the Company filed a Certificate of Designation of Rights, Privileges, Preferences, and Restrictions of Series E Preferred Stock (the “Certificate of Designation”) with the Secretary of State of the State of Nevada to establish the rights, privileges, preferences, and restricts of the Series E Preferred Stock. The Certificate of Designation became effective upon filing on February 14, 2023.
  evidence_url: https://www.sec.gov/Archives/edgar/data/1144879/000114487923000074/0001144879-23-000074-index.htm
- Material Agreements
  Applied Digital Corp. entered into Loan Agreement with Starion Bank valued at $20,000,000 (effective 2023-02-16).
  - Action: entry
  - Agreement: credit facility
  - Counterparty: Starion Bank
  - Value: $20,000,000
  - Effective: 2023-02-16
  source text: On February 16, 2023, APLD ELN-01 LLC (the “Borrower”), a wholly-owned subsidiary of Applied Digital Corporation (the “Company”), entered into a Loan Agreement with Starion Bank (“Lender”) and the Company as Guarantor (the “Loan Agreement”).
  evidence_url: https://www.sec.gov/Archives/edgar/data/1144879/000114487923000074/0001144879-23-000074-index.htm

This AI-assisted summary is a reading aid. Review the linked SEC EDGAR filing before relying on any specific claim.