Conversion price floor of $4.25
Company: Applied Digital
The claim, verbatim
The preferred stock converts into common stock at the greater of 95% of the lowest daily VWAP over the five preceding trading days and $4.25, subject to adjustment.
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: “at an initial per share conversion price of the greater of 95% of the lowest daily VWAP for each of the five trading days immediately preceding the conversion date and$4.25”
How we checked this
Checked on October 17, 2026. The cited source supports every part of this claim.
The press release gives this exact conversion formula, including the $4.25 floor, and says it is subject to adjustment under the governing documents.
Confirmed in the source:
- The preferred stock converts into common stock
- The initial conversion price is the greater of 95% of the lowest daily VWAP over the five trading days immediately preceding conversion and $4.25
- The conversion price is subject to adjustment
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: “at an initial per share conversion price of the greater of 95% of the lowest daily VWAP for each of the five trading days immediately preceding the conversion date and$4.25”