Applied Digital Raises $160M in Private Placement

By Tamara Parker • Tuesday, September 10 08:03 • Permanent Link

Applied Digital Corporation (NASDAQ: APLD) has announced a significant $160 million private placement financing round, signaling a major endorsement of the company's innovative approach to high-performance computing (HPC) infrastructure. The financing comes from a group of institutional and accredited investors, including Nvidia and related companies, as well as a prominent privately-owned real estate company with expertise in data center development.

This injection of capital will further strengthen Applied Digital's financial position as it seeks to bring its transformative data center and GPU cloud solutions to market at scale. The company's projects include the build-out of one of the world's largest data centers and the development of an additional 300MW of data center capacity, demonstrating its commitment to meeting the growing demand for advanced HPC and AI workloads.

In the private placement, Applied Digital has agreed to issue 49,382,720 shares of its common stock at a price per share of $3.24, based on the last closing price on September 4, 2024. This move reflects the confidence institutional and accredited investors, as well as industry leaders like Nvidia, have placed in the company.

Applied Digital's CEO and Chairman, Wes Cummins, emphasized the company's strong relationship with Nvidia and the confidence placed in them by key investors. Cummins highlighted the team's readiness to bring to market the vital capacity and liquid-cooled IT environments designed for AI, HPC, and other accelerated compute workloads.

Goldman Sachs & Co. LLC is serving as the exclusive placement agent for the private placement, and Lowenstein Sandler LLP is acting as legal adviser to Applied Digital in connection with this transaction.

The company's commitment to innovation and addressing market demands, coupled with the endorsement from industry leaders and the substantial financing, positions Applied Digital as a significant player in the rapidly evolving HPC and AI infrastructure landscape. The market has reacted to these announcements by moving the company's shares 44.6% to a price of $6.58. For the full picture, make sure to review Applied Digital's 8-K report.

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