Applied Digital Corporation

29/07/2024 | Press release | Distributed by Public on 29/07/2024 12:27

Material Event Form 8 K

Item 8.01 Other Events.
Applied Digital Extends Agreement with U.S. Hyperscaler
On July 26, 2024, Applied Digital Corporation (the "Company") entered into an agreement extending the exclusivity period under the previously announced letter of intent with the U.S. based hyperscaler for leasing the Company's Ellendale, North Dakota campus, which is being built to support 400 megawatts of critical IT load. The Company and the hyperscaler have been engaged in due diligence and negotiations of the lease documentation. The extended exclusivity period is intended to afford the parties sufficient time to complete their negotiations and documentation. However, no assurance can be given that the parties will actually consummate the lease documentation.
The Company continues construction on the first 100 megawatt building on the Ellendale, North Dakota campus, and to focus on the growth of the Company's cloud business. As previously announced, the Company continues to opportunistically explore various financing options for these activitiesincluding negotiating term sheets and letters of intent with various lenders and investors. The Company may be engaged in a multitude of conversations and negotiations with various financing sources at any point in time, and such discussions may be in varying stages of negotiation at any point in time. No assurance can be given that any of the financings analyzed by the Company will be on terms acceptable to the Company or will be completed at all.
Forward-Looking Statements
This Current Report on Form 8-K and other reports filed by Registrant from time to time with the Securities and Exchange Commission 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," "project" 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.