Applied Digital Announces New $50 Million Loan to Accelerate Growth
May 19 2023 - 8:00AM
Applied Digital Corporation (Nasdaq:
APLD) ("Applied Digital" or the
"Company"), a designer, builder and operator of
next-generation digital infrastructure that is designed for High
Performance Computing (“HPC”) applications, today announced that
the Company has reached an agreement for a loan with a maximum
principal amount of $50.0 million. The Company intends to use the
loan, which has a 2-year term and 9.0% interest rate, to provide
additional liquidity to fund the buildout of its AI Cloud platform
and datacenters.
“We are happy to secure this commitment which allows us to
accelerate our growth in high performance computing digital
infrastructure and our new Sai Computing AI Cloud platform for
which we continue to see unprecedented demand,” said Applied
Digital CEO and Chairman, Wes Cummins. “This additional funding is
a continued endorsement of the strength of our business and
illustrates our ability to secure low-cost, non-dilutive financing
to fund a portion of our growth capital needs.”
Earlier this week Applied Digital announced the launch of its
Artificial Intelligence (AI) Cloud services that will provide
high-performance computing power for AI applications. The Company
also recently signed its first major AI customer with an agreement
worth up to $180 million over a 24-month period.
Applied Digital’s next-generation datacenters are ideal hosting
sites for HPC applications that can offer lower cost, high compute
power solutions compared to traditional datacenters that are
typically higher cost and do not have the ability in most current
facilities to provide the power density required for AI/ML
workload.
About Applied Digital Applied Digital
(Nasdaq: APLD) designs, develops and operates next-generation
datacenters 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
Twitter at @APLDdigital.
About Sai Computing Sai Computing
Holdings LLC. provides GPU compute solutions to help customers more
cost-effectively execute critical AI, ML, rendering, web3, and
other HPC workloads. Our infrastructure is purpose-built for
high-performance at ultra-low cost.
Forward-Looking Statements
This 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. These statements use words, and variations of words,
such as "continue," "build," "future," "increase," "drive,"
"believe," "look," "ahead," "confident," "deliver," "outlook,"
"expect," and "predict." Other examples of forward-looking
statements may include, but are not limited to, (i) statements of
Company plans and objectives, including our evolving business
model, 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@gatewayir.com
Media ContactRobert Collins or Brenlyn
Motlagh Gateway Group, Inc.(949)
899-3135APLD@gatewayir.com
Applied Digital (NASDAQ:APLD)
Historical Stock Chart
From Aug 2024 to Sep 2024
Applied Digital (NASDAQ:APLD)
Historical Stock Chart
From Sep 2023 to Sep 2024