---
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"
generated_at: "2026-06-04T04:21:41.069895+00:00"
event_type: "debt"
sentiment: "neutral"
materiality_score: 0.65
calibrated_materiality_score: 0.65
confidence: "high"
source: SEC EDGAR
---

# Applied Digital secures $50M convertible debenture to fund HPC data center build

## Summary
- 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.

## SEC filing metadata
- 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
- event_type: debt
- sentiment: neutral
- materiality_score: 0.65
- calibrated_materiality_score: 0.65
- confidence: high
- sec_items: 1.01, 2.03, 3.02, 8.01, 9.01
- 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

## Machine-readable alternates
- HTML: https://secwatch.observer/filing/0001144879-24-000061
- JSON: https://secwatch.observer/filing/0001144879-24-000061.json
- Plain text: https://secwatch.observer/filing/0001144879-24-000061.txt

## Key facts
- Debt Financings
  Applied Digital Corp. incurred convertible notes of $40 million with YA II PN, LTD. at zero percent (0%) maturing April 8, 2025.
  - Instrument: convertible notes
  - Principal: $40 million
  - Counterparty: YA II PN, LTD.
  - Rate: zero percent (0%)
  - Maturity: April 8, 2025
  - Event: incurrence
  source text: 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_url: https://www.sec.gov/Archives/edgar/data/1144879/000114487924000061/0001144879-24-000061-index.htm
- Material Agreements
  Applied Digital Corp. entered into PPA with YA II PN, LTD. valued at $50 million (effective 2024-03-27).
  - Action: entry
  - Agreement: equity purchase
  - Counterparty: YA II PN, LTD.
  - Value: $50 million
  - Effective: 2024-03-27
  source text: 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_url: https://www.sec.gov/Archives/edgar/data/1144879/000114487924000061/0001144879-24-000061-index.htm

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