Debenture conversion terms
Company: Applied Digital
The claim, verbatim
The conversion price is the lower of $6.00 or 95% of the lowest daily VWAP over the five trading days before conversion, with a $3.00 floor. The investor may convert no more than $9.0 million per month and only after May 1, 2024, except on an event of default at the $6.00 price.
Source (primary)
applied-digital 8-K exhibit (apld-yorkvilleprx33124.htm) (SEC EDGAR (8-K Ex), press_release)
View cached copy (2026-11-08)Live source ↗
Quote: “The conversion price for the note is the lower (a) $6.00 and (b) 95% of the lowest daily volume weighted average price of the Company’s common stock during the five trading days immediately prior to the date of conversion, subject to a floor price of $3.00”
How we checked this
Checked on November 9, 2026. The cited source supports every part of this claim.
The release sets out the conversion formula, the $3.00 floor, the $9.0 million monthly cap, the May 1, 2024 start date and the event-of-default exception at $6.00.
Confirmed in the source:
- The conversion price is the lower of $6.00 or 95% of the lowest daily VWAP over the five trading days before conversion
- The conversion price is subject to a $3.00 floor
- The investor may convert no more than $9.0 million per month
- The investor may begin converting only after May 1, 2024
- These limits do not apply on an event of default when the conversion price is set at $6.00
What we did: Read our cached copy of SEC EDGAR (8-K Ex) (https://www.sec.gov/Archives/edgar/data/1144879/000114487924000061/apld-yorkvilleprx33124.htm) in full (5,644 characters, retrieved November 8, 2026) and checked each assertion in the claim against it.
Additional evidence
confirms applied-digital 8-K exhibit (apld-yorkvilleprx33124.htm)
Quote: “The conversion price for the note is the lower (a) $6.00 and (b) 95% of the lowest daily volume weighted average price of the Company’s common stock during the five trading days immediately prior to the date of conversion, subject to a floor price of $3.00”