04:56 PM EDT, 05/24/2024 (MT Newswires) -- Applied Digital ( APLD ) said Friday it agreed to a private financing transaction with an investor and issued a $42.1 million unsecured convertible debenture.

The debenture has a term of 54 weeks, original issue discount of 5% and bears no interest, according to the company.

The company said it plans to use the proceeds to fund the construction phase of its HPC data center in Ellendale, North Dakota.

The company said that the investor agreed not to short the stock during the term of the note.

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