Applied Digital Corp. (APLD): M&A transaction — Applied Digital closes $87.3M sale of Garden City data center to Marathon Digital; pro forma shows $24.8M loss on sale

Applied Digital Corp.

Sale of Texas data center facility to Mara Garden City (Marathon subsidiary) completed April 1, 2024 for $87.3M plus $10.0M from security deposit surrender.
Purchase price may be reduced by up to $34M if full additional megawatt energization not conditionally approved within 120 days.
Pro forma balance sheet at Nov 30, 2023 shows cash increase to $36.5M from $9.2M; total assets decline to $417.8M from $480.7M.
Pro forma net loss for FY2023 increased to $68.9M from $45.6M, including $27.7M loss on disposal of assets and debt extinguishment.
Company used proceeds to repay debt secured by facility ($10.7M) and buy out finance lease liabilities not assumed by Marathon.

Key facts

Extracted from this filing and checked against the source text.

M&A Transactions SEC 8-K Item 2.01/5.01 confidence 0.98

Applied Digital Corp. completed a disposition involving Mara Garden City LLC (subsidiary of Marathon Digital Holdings, Inc.) for $87,328,675 (closed 2024-04-01).

Action: disposition
Counterparty: Mara Garden City LLC (subsidiary of Marathon Digital Holdings, Inc.)
Consideration: $87,328,675
Closing: 2024-04-01

Exact text from the filing

On April 1, 2024, the Transaction was consummated pursuant to the terms of the Purchase and Sale Agreement (the “Closing”). The purchase price payable by Mara Garden City to Rattlesnake Den I under the terms of the Purchase and Sale Agreement is $87,328,675 (the “Purchase Price”), plus additional consideration of $9,971,235 received by the Company at Closing in connection with the surrender of Marathon’s security deposits under its existing agreements with the Company.

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Source: SEC EDGAR

accession 0001144879-24-000063

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