Applied Digital Secures $100M Credit Facility

TL;DR

Applied Digital just got a $100M credit line to fuel data center growth.

AI Summary

Applied Digital Corp. announced on June 5, 2024, that it has entered into a new credit agreement with an initial borrowing capacity of $100 million, which can be expanded up to $250 million. This facility is intended to support the company's growth initiatives, including its data center development and expansion plans.

Why It Matters

This new credit facility provides Applied Digital with significant financial flexibility to fund its expansion projects, potentially accelerating its growth in the data center market.

Risk Assessment

Risk Level: medium — The company is taking on debt to fund growth, which carries inherent financial risks if growth targets are not met.

Key Numbers

• $100.0M — Credit Facility Initial Capacity (Provides immediate funding for growth initiatives.)
• $250.0M — Credit Facility Expansion Capacity (Offers potential for future funding needs.)

Key Players & Entities

• Applied Digital Corp. (company) — Registrant
• $100 million (dollar_amount) — Initial borrowing capacity
• $250 million (dollar_amount) — Maximum borrowing capacity
• June 5, 2024 (date) — Date of earliest event reported

FAQ

Filing Documents

• apld-20240605.htm (8-K) — 23KB
• 0001144879-24-000145.txt ( ) — 147KB
• apld-20240605.xsd (EX-101.SCH) — 2KB
• apld-20240605_lab.xml (EX-101.LAB) — 22KB
• apld-20240605_pre.xml (EX-101.PRE) — 13KB
• apld-20240605_htm.xml (XML) — 3KB

01 Other Events

Item 8.01 Other Events. As previously disclosed, on November 15, 2023, a lawsuit asserting derivative claims was filed in the District Court of Clark County, Nevada (the "Court"), on behalf of nominal defendant Applied Digital Corporation (the "Company") against six members of our board of directors in a case captioned Robert Weich v. Wes Cummins, et. al. , No. A-23-881629-B. The complaint asserted claims for breach of fiduciary duty, unjust enrichment, and corporate waste arising from statements made by the Company concerning its cryptocurrency mining business segment and a loan that the Company's subsidiary, SAI Computing LLC, received from B. Riley Commercial Capital and B. Riley Securities, as well as the early repayment of that loan. On February 27, 2024, the plaintiff filed an amended complaint asserting the same claim as the original complaint. On June 5, 2024, following a complete briefing and argument on the defendants' motion to dismiss, the Court entered an order granting the defendants' motion without prejudice and holding that the plaintiff failed to plead (1) demand futility as to each of plaintiff's claims or (2) a claim for breach of fiduciary duty. The order dismissed all claims against all defendants, including the Company. The plaintiff has the ability to move for leave to file an amended complaint. If plaintiff does not file such a motion or the court denies it, the plaintiff will have 30 days after notice of entry of the order granting the motion to dismiss to file a notice of appeal. SIGNATURE Pursuant to the requirements of Section 13 or 15 (d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Dated: June 5, 2024 By: /s/ David Rench Name: David Rench Title: Chief Financial Officer

View Full Filing

View this 8-K filing on SEC EDGAR