Applied Digital (APLD) Falls 7.5% After New $787 Million Financing

We recently published 10 Stocks Suffer Heavy Selling Pressure. Applied Digital Corp. (NASDAQ:APLD) is one of the worst-performing stocks on Wednesday.

Applied Digital dropped by 7.56 percent on Wednesday to close at $26.41 apiece as investors sold positions following news that it secured $787.5 million in fresh funds from Macquarie Asset Management.

In a statement, Applied Digital Corp. (NASDAQ:APLD) said that the total amount forms part of the $5 billion perpetual preferred equity financing facility, which it secured earlier, proceeds of which will be used to support the development of its Polaris Forge 1 and 2 data centers in North Dakota.

Of the total, $450 million will be allocated for the completion of Forge 2, which is capable of powering 1 GW of critical IT load. Of the total capacity, some 200 MW has already been successfully leased to a US-based Investment Grade Hyperscaler. Meanwhile, the balance will be allocated for Forge 1.

In addition to the said funding, Applied Digital Corp. (NASDAQ:APLD) last Monday entered into a loan and security agreement with First National Bank of Omaha for up to $65 million in revolving loans and letters of credit from time to time.

The loan carries an interest rate of 2.75 percent per annum and will be secured by all of Applied Digital Corp.’s (NASDAQ:APLD) assets.

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Disclosure: None. This article is originally published at Insider Monkey.