Wed, Aug 14, 8:22 PM (153 days ago)
Applied Digital Corporation (APLD) reported on August 11, 2024, significant financing developments via a promissory note with CIM APLD Lender Holdings, LLC. Initially, the company secured $15 million, with potential borrowings up to $110 million, contingent on specific conditions. A waiver agreement allowed APLD to draw an additional $20 million, with the issuance of additional warrants for 2,964,917 shares as part of the deal. The total warrants issued could amount to 9,265,366 shares. Additionally, APLD entered into an exclusivity arrangement that restricts it from refinancing the note until certain conditions are met, with a penalty of $2.5 million for any breach. The company also issued 100,000 shares to YA II PN, LTD. as part of a consent agreement related to these transactions. These developments may impact APLD's financial position and stock value, with the potential for increased liquidity but also greater equity dilution. APLD is required to file a registration statement for the resale of shares underlying the new warrants within specific timelines.