secwatch.observer — SEC 8-K summary
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Issuer:     Applied Digital Corp. (APLD)
CIK:        0001144879
Form:       8-K
Filed at:   2024-04-01T23:59:59+00:00
Accession:  0001144879-24-000061
Event type: debt
Sentiment:  neutral
Materiality: 0.65
Item codes: 1.01, 2.03, 3.02, 8.01, 9.01
LLM model:  deepseek-v4-flash:cloud@v2

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

Source:
  EDGAR index:    https://www.sec.gov/Archives/edgar/data/1144879/000114487924000061/0001144879-24-000061-index.htm
  Primary doc:    https://www.sec.gov/Archives/edgar/data/1144879/000114487924000061/apld-20240327.htm
  HTML page:      https://secwatch.observer/filing/0001144879-24-000061

License: Source filings: public domain (SEC EDGAR). Summaries (headline + bullets): CC-BY-4.0; attribute https://secwatch.observer