secwatch.observer — SEC 8-K summary
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Issuer:     Applied Digital Corp. (APLD)
CIK:        0001144879
Form:       8-K
Filed at:   2024-04-05T23:59:59+00:00
Accession:  0001144879-24-000063
Event type: m_and_a
Sentiment:  neutral
Materiality: 0.75
Item codes: 2.01, 9.01
LLM model:  deepseek-v4-flash:cloud@v2

Applied Digital closes $87.3M sale of Garden City data center to Marathon Digital; pro forma shows $24.8M loss on sale
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- 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.

Source:
  EDGAR index:    https://www.sec.gov/Archives/edgar/data/1144879/000114487924000063/0001144879-24-000063-index.htm
  Primary doc:    https://www.sec.gov/Archives/edgar/data/1144879/000114487924000063/apld-20240401.htm
  HTML page:      https://secwatch.observer/filing/0001144879-24-000063

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