Thu, May 1, 2025

Applied Digital enters $150 million Series G convertible preferred equity facility

Key points

Entered a preferred equity purchase agreement (PEPA) on April 30, 2025 giving the company the right, but not the obligation, to sell up to $150 million of newly designated Series G convertible preferred stock to institutional investors.
Shares carry a $1,000 stated value and purchase price, no preferred dividends, and are sold at a 4% original issue discount; draws are at the company's discretion in $25 million increments over a 36-month term.
Conversion price is the greater of 95% of the lowest daily VWAP over the five preceding trading days and a $4.25 initial floor (reducible to no lower than $1.34), subject to a 4.99% ownership cap and a 19.99% exchange cap.
Proceeds will fund development of the Ellendale HPC campus and general corporate purposes; the first data center building is nearing construction completion while the second is in build-out.
In connection with the PEPA, the company terminated its standby equity purchase agreement with YA II PN, Ltd. with no shares issued and no penalties.

Site	Status	Active	In build	Theoretical
Polaris Forge 1Ellendale, ND First data center building at the Ellendale HPC campus nearing completion of construction; build-out of the second data center progressing, to be funded in part by Series G preferred equity facility draws	Under construction	—	—	—