secwatch.observer — SEC 8-K summary
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Issuer:     Applied Digital Corp. (APLD)
CIK:        0001144879
Form:       8-K
Filed at:   2024-04-30T23:59:59+00:00
Accession:  0001144879-24-000097
Event type: debt
Sentiment:  neutral
Materiality: 0.55
Item codes: 1.01, 2.03, 3.02, 9.01
LLM model:  deepseek-v4-flash:cloud@v2

Applied Digital draws second $10M convertible note, completing $50M PPA with YA II PN
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- Issued $10M convertible unsecured promissory note at 5% OID for $9.5M cash on April 24, 2024.
- Note matures April 8, 2025, bears 0% interest (18% on default), convertible at a variable conversion price.
- Completes the $50M Prepaid Advance Agreement; first $40M note was issued March 27, 2024.
- Note proceeds include monthly amortization trigger if certain events occur (e.g., registration failure).

Source:
  EDGAR index:    https://www.sec.gov/Archives/edgar/data/1144879/000114487924000097/0001144879-24-000097-index.htm
  Primary doc:    https://www.sec.gov/Archives/edgar/data/1144879/000114487924000097/apld-20240424.htm
  HTML page:      https://secwatch.observer/filing/0001144879-24-000097

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