Applied Digital Secures Private Debt Facility of up to $200 million to Accelerate HPC Data Center Project in Ellendale, North Dakota
2024年6月7日 - 9:21PM
Applied Digital Corporation (Nasdaq: APLD) ("Applied Digital"
or the "Company"), a designer, builder, and operator of
next-generation digital infrastructure designed for
High-Performance Computing (“HPC”) applications, announced today
that the Company has secured private financing from CIM Group, a
leading investment firm and alternative asset manager with
extensive experience in top-tier datacenter finance and
development. APLD Holdings 2, LLC, a subsidiary of the Company (the
“Borrower”), has issued a Promissory Note (the “Note”) for
commitments that total $125 million at close (“Initial
Commitments”). Of the Initial Commitments, $15 million will be
drawn on the date hereof, and the remaining will be drawn subject
to the satisfaction of certain conditions outlined in the Note. In
addition to the Initial Commitments, the Note includes an accordion
feature that allows for up to an additional $75 million of
borrowings, subject to the mutual agreement of the Borrower and
lender. Principal amounts repaid under the Note will not be
available for reborrowing. In total, this financing provides the
Company with up to $200 million to be used solely towards the
buildout of its HPC Campus in Ellendale, ND.
“We believe this financing with CIM Group
represents a transformative step in the Company’s journey to secure
both project financing and a long-term lease with a hyperscaler at
our HPC Campus in Ellendale, ND. With this financing, we believe we
are able to keep our buildout plan on track and hope to finalize
optimal terms for project financing concurrently with or shortly
after the signing of a long-term lease,” said Wes Cummins, Applied
Digital’s CEO. “We now believe we have line of sight to finalize
the build-out of our Ellendale Campus, positioning Applied Digital
as a leader in the datacenter infrastructure sector. We distinguish
ourselves not merely by owning clusters of GPUs, but also by
designing and operating large-scale, top-tier datacenters for
world-class customers driving the AI revolution. We believe our
Ellendale Campus will be a leading HPC datacenter, representing a
significant advancement in the industry.” “CIM Group is excited to
support Applied Digital’s growth in cloud and hosting services for
some of the world’s top companies,” said Avi Shemesh, Co-Founder
and Principal, CIM Group. “CIM will continue to invest in digital
infrastructure, providing solutions to companies building the AI
ecosystem.”
The Note will have a three-year term and bear
interest at an initial rate of 12.0% per annum, payable quarterly
in arrears. The Company may prepay the Note in full at any time,
subject to certain defined prepayment penalties, which increase if
the Note remains outstanding for longer than six months. In
connection with the financing, the lender will receive warrants for
6,300,449 shares of common stock of the Company with a strike price
of $4.8005 per share (a premium of 10% to the 10 day VWAP). The
lender will receive a warrant to purchase up to an additional
2,964,917 shares of common stock of the Company at the same strike
price, subject to the Company meeting certain conditions. This
second tranche of warrants will be issued only after the borrowing
of the full $125 million is made available and will be issued in a
private placement.
Amidst the surging AI revolution, management
believes Applied Digital is uniquely positioned, offering
cutting-edge solutions in Datacenters and Cloud as a Service. Our
purpose-built datacenters are strategically designed to maximize
efficiency for HPC needs. Applied Digital Cloud delivers
cost-effective GPU computer solutions tailored for AI, ML,
rendering, and other HPC workloads. We believe Applied Digital’s
state-of-the-art infrastructure offers high performance at a low
cost, empowering clients to thrive in this era of exponential
technological advancement. With a commitment to innovation and
exceptional customer support, we aim to facilitate businesses in
harnessing the transformative power of AI.
Simpson Thacher & Bartlett LLP acted as
legal counsel to lender. Milbank LLP and Lowenstein Sandler LLP
acted as legal counsel to the Company.
This press release shall not constitute an offer
to sell or the solicitation of an offer to buy, nor may there be
any sale of any securities in any state or jurisdiction in which
such offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of any such
state or jurisdiction.
About Applied DigitalApplied
Digital (Nasdaq: APLD) designs, develops, and operates
next-generation data centers across North America to provide
digital infrastructure solutions to the rapidly growing
high-performance computing (HPC) industry. Find more information at
www.applieddigital.com. Follow us on X (formerly Twitter) at
@APLDdigital.
Forward-Looking StatementsThis
release contains "forward-looking statements" as defined in the
Private Securities Litigation Reform Act of 1995 regarding, among
other things, future operating and financial performance, product
development, market position, business strategy and objectives and
the closing of the transaction described herein. These statements
use words, and variations of words, such as "continue," "build,"
"future," "increase," "drive," "believe," "look," "ahead,"
"confident," "deliver," "outlook," "expect," “intend,” “hope,”
“project” and "predict." Other examples of forward-looking
statements may include, but are not limited to, (i) statements of
Company plans and objectives, including advancement in our
construction phase of the HPC data center in Ellendale, North
Dakota, our evolving business model and a shift in our business
strategy towards our HPC data centers, or estimates or predictions
of actions by suppliers, (ii) statements of future economic
performance, and (iii) statements of assumptions underlying other
statements and statements about the Company or its business. You
are cautioned not to rely on these forward-looking statements.
These statements are based on current expectations of future events
and thus are inherently subject to uncertainty. If underlying
assumptions prove inaccurate or known or unknown risks or
uncertainties materialize, actual results could vary materially
from the Company's expectations and projections. These risks,
uncertainties, and other factors include: decline in demand for our
products and services; the volatility of the crypto asset industry;
the inability to comply with developments and changes in
regulation; cash flow and access to capital; and maintenance of
third-party relationships. Information in this release is as of the
dates and time periods indicated herein, and the Company does not
undertake to update any of the information contained in these
materials, except as required by law.
Investor Relations ContactsMatt Glover or Alex
KovtunGateway Group, Inc.(949) 574-3860APLD@gateway-grp.com
Media ContactBrenlyn Motlagh or Diana Jarrah
Gateway Group, Inc.(949) 899-3135APLD@gateway-grp.com
About CIM GroupCIM is a leading investment firm
and alternative asset manager. Since 1994, CIM has sought to create
value in projects and positively impact the lives of people in
communities across the Americas by delivering more than $60 billion
of essential real estate and infrastructure projects. CIM’s diverse
team of experts applies its broad knowledge and disciplined
approach through hands-on management of real assets to deliver
excellence to our clients, stakeholders, and the communities we
serve. For more information, visit www.cimgroup.com.
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