{"schema_version":"secwatch.filing_event.v1","accession":"0001144879-24-000061","form_type":"8-K","ticker":"APLD","cik":"0001144879","company_name":"Applied Digital Corp.","filed_at":"2024-04-01T23:59:59+00:00","discovered_at":"2026-05-14T18:03:17.457235+00:00","generated_at":"2026-06-04T04:21:41.069895+00:00","sec_items":["1.01","2.03","3.02","8.01","9.01"],"event_type":"debt","sentiment":"neutral","materiality_score":0.65,"calibrated_materiality_score":0.65,"confidence":"high","headline":"Applied Digital secures $50M convertible debenture to fund HPC data center build","bullets":["Issued $40M initial note on Mar 27, 2024; second $10M note after registration effective.","Zero interest, 5% OID, maturity Apr 8, 2025; conversion floor price $3.00.","Conversion price lower of $6.00 fixed or 95% of lowest 5-day VWAP; investor limited to $9M/month conversions starting May 1, 2024.","Proceeds to advance construction of Ellendale, ND HPC data center, supplemented by Garden City facility sale.","Investor contractually agreed not to short stock during note term; Northland Capital Markets acted as placement agent."],"urls":{"canonical":"https://secwatch.observer/filing/0001144879-24-000061","json":"https://secwatch.observer/filing/0001144879-24-000061.json","markdown":"https://secwatch.observer/filing/0001144879-24-000061.md","text":"https://secwatch.observer/filing/0001144879-24-000061.txt","edgar_index":"https://www.sec.gov/Archives/edgar/data/1144879/000114487924000061/0001144879-24-000061-index.htm","edgar_primary_document":"https://www.sec.gov/Archives/edgar/data/1144879/000114487924000061/apld-20240327.htm"},"model":{"generated_by":"deepseek-v4-flash:cloud@v2","generated_at":"2026-06-04T04:21:41.069895+00:00"},"review":{"review_status":"machine_generated","human_reviewed":false,"corrected":false,"correction_note":null,"correction_timestamp":null,"superseded_by":null,"related_filings":[]},"source_grounded_claims":[{"claim_id":"fcf73352c17e329c67412a4e1031226484a60a04","claim":"Applied Digital Corp. incurred convertible notes of $40 million with YA II PN, LTD. at zero percent (0%) maturing April 8, 2025.","evidence_excerpt":"On March 27, 2024, Applied Digital Corporation, a Nevada corporation (the “Company”) entered into a Prepaid Advance Agreement (the “PPA”) with YA II PN, LTD., a Cayman Islands exempt limited partnership (the “Investor”). In accordance with the terms of the PPA, the Investor has agreed to advance up to $50 million to the Company pursuant to two convertible unsecured promissory notes (the “Promissory Notes”). The Company issued the first Promissory Note on March 27, 2024, in the principal amount of $40 million","evidence_source":"SEC 8-K Item 2.03/2.04","evidence_url":"https://www.sec.gov/Archives/edgar/data/1144879/000114487924000061/0001144879-24-000061-index.htm","confidence":0.9,"family_label":"Debt Financings","details":[{"label":"Instrument","value":"convertible notes"},{"label":"Principal","value":"$40 million"},{"label":"Counterparty","value":"YA II PN, LTD."},{"label":"Rate","value":"zero percent (0%)"},{"label":"Maturity","value":"April 8, 2025"},{"label":"Event","value":"incurrence"}],"fact_type":"debt_financing"},{"claim_id":"ee7320d3c39b775f763e6d4d741881c7115f8979","claim":"Applied Digital Corp. entered into PPA with YA II PN, LTD. valued at $50 million (effective 2024-03-27).","evidence_excerpt":"On March 27, 2024, Applied Digital Corporation, a Nevada corporation (the “Company”) entered into a Prepaid Advance Agreement (the “PPA”) with YA II PN, LTD., a Cayman Islands exempt limited partnership (the “Investor”). In accordance with the terms of the PPA, the Investor has agreed to advance up to $50 million to the Company","evidence_source":"SEC 8-K Item 1.01/1.02","evidence_url":"https://www.sec.gov/Archives/edgar/data/1144879/000114487924000061/0001144879-24-000061-index.htm","confidence":0.9,"family_label":"Material Agreements","details":[{"label":"Action","value":"entry"},{"label":"Agreement","value":"equity purchase"},{"label":"Counterparty","value":"YA II PN, LTD."},{"label":"Value","value":"$50 million"},{"label":"Effective","value":"2024-03-27"}],"fact_type":"material_agreement"}],"license":"Source filings: public domain (SEC EDGAR). Summaries (headline + bullets): CC-BY-4.0; attribute https://secwatch.observer"}