$150M convertible preferred equity facility
Company: Applied Digital
The claim, verbatim
Applied Digital entered into a private financing arrangement with institutional investors giving it the right, but not the obligation, to sell up to $150 million of newly created convertible preferred stock over a 36-month term, in $25 million increments at its discretion.
Source (primary)
applied-digital 8-K exhibit (ex99-1.htm) (SEC EDGAR (8-K Ex), press_release)
View cached copy (2026-10-16)Live source ↗
Quote: “the Company entered into a private financing arrangement with institutional investors (the “Investors”), pursuant to which the Company has the right, but not an obligation, to sell up to $150 million of a newly created series of convertible preferred stock to the Investors”
How we checked this
Checked on October 17, 2026. The cited source supports every part of this claim.
The press release states every element of this claim: the private arrangement with institutional investors, the optional $150 million sale right, the 36-month term, and discretionary $25 million draws. Draws are also subject to certain conditions being met.
Confirmed in the source:
- Applied Digital entered into a private financing arrangement with institutional investors
- The company has the right, but not the obligation, to sell up to $150 million of a newly created series of convertible preferred stock
- The facility has a 36-month term
- Draws are at the company's discretion in $25 million increments
What we did: Read our cached copy of SEC EDGAR (8-K Ex) (https://www.sec.gov/Archives/edgar/data/1144879/000164117225008007/ex99-1.htm) in full (7,466 characters, retrieved October 16, 2026) and checked each assertion in the claim against it.
Additional evidence
confirms applied-digital 8-K exhibit (ex99-1.htm)
Quote: “the Company entered into a private financing arrangement with institutional investors (the “Investors”), pursuant to which the Company has the right, but not an obligation, to sell up to $150 million of a newly created series of convertible preferred stock to the Investors”