Applied Digital (NASDAQ:APLD) said on Wednesday that it has entered into a private financing arrangement with institutional investors, pursuant to which the company has the right, but not an obligation, to sell up to $150M of a newly created series of convertible preferred stock to the investors.
The convertible preferred stock issuable under the equity facility has a stated value and purchase price of $1,000 per share, bears no preferred return or preferred dividends, and will be sold at an original issue discount of four percent.
The facility has a term of 36 months, over which the company can draw up to $150M at its discretion, in increments of $25 million, as long as certain conditions are met.
Applied Digital retains full control over the timing and amount of any sales to the investors, with no obligation to utilize any of the $150 million available under the facility.
The company plans to use the proceeds from draws under the facility to fund development of the Ellendale HPC Campus and for general corporate purposes.
Shares of Applied Digital (NASDAQ:APLD) were up 1.5% in extended trading.
