Applied Digital Corporation
05/06/2024 | Press release | Distributed by Public on 05/06/2024 15:08
Material Agreement - Form 8-K
Item 1.01 Entry into a Material Definitive Agreement.
On May 6, 2024, Applied Digital Corporation (the "Company") entered into a Sales Agreement (the "Sales Agreement") with Roth Capital Partners, LLC (the "Agent"), pursuant to which the Company may offer and sell, from time to time, through the Agent, up to $25,000,000 of shares of its common stock, par value $0.001 per share (the "Common Stock").
The Company is not obligated to sell any shares under the Sales Agreement. Subject to the terms and conditions of the Sales Agreement, the Agent will use commercially reasonable efforts consistent with its normal trading and sales practices, applicable state and federal law, rules and regulations and the rules of The Nasdaq Stock Market LLC to sell shares of Common Stock from time to time based upon the Company's instructions, including any price, time or size limits. Upon delivery of a placement notice to the Agent, and subject to the Company's instructions in that notice, and the terms and conditions of the Sales Agreement generally, the Agent may sell the shares of Common Stock by any method permitted by law deemed to be an "at the market offering" as defined by Rule 415(a)(4) promulgated under the Securities Act of 1933, as amended, including sales made directly on or through the Nasdaq Global Select Market or any other existing trade market for its Common Stock, in negotiated transactions at market prices prevailing at the time of sale or at prices related to prevailing market prices, or any other method permitted by law.
The Sales Agreement provides that the Agent will be entitled to compensation for its services in an amount equal to 3.0% of the aggregate gross proceeds from the sales thereunder. The Sales Agreement contains customary representations, warranties and agreements by the Company, indemnification obligations of the Company and the Agent, other obligations of the parties and termination provisions.
The shares of Common Stock will be issued pursuant to the Company's effective shelf registration statement on Form S-3 (File No. 333-272023), filed with the Securities and Exchange Commission (the "SEC") on May 17, 2023, and declared effective by the SEC on June 5, 2023, and the accompanying base prospectus included therein as supplement by the prospectus supplement, dated May 6, 2024, filed with the SEC.
The foregoing description of the Sales Agreement is not complete and is qualified in its entirety by reference to the full text of such agreement, a copy of which is filed herewith as Exhibit 1.1 to this Current Report on Form 8-K and is incorporated herein by reference.
A copy of the legal opinion and consent of Snell & Wilmer L.L.P. relating to the shares of Common Stock being offered and sold pursuant to the Sales Agreement is attached hereto as Exhibit 5.1.
This Current Report on Form 8-K shall not constitute an offer to sell or the solicitation of an offer to buy any shares under the Sales Agreement, nor shall there be any sale of such shares in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.