Applied Digital surges 65% on funding deal with investors, including Nvidia
10:54 am Thursday, September 05th, 2024
(Reuters) -Applied Digital shares soared nearly 65% to hit their highest level in more than a month on Thursday, after the data center operator said it would receive $160 million in financing from a group of investors, including chip giant Nvidia.
Investors in the deal would also include privately owned real estate firm Related Companies.
Applied Digital designs and operates data centers to provide digital infrastructure solutions, primarily to businesses looking to adopt generative artificial intelligence technology.
Its shares have fallen about 52% so far this year, as of last close.
The company has agreed to issue around 49 million shares of its common stock at $3.24 a share, representing its closing price on Sept. 4, through a private placement.
It posted a bigger-than-expected loss for the fourth quarter in August, hurt by substantial expenses related to facilities and equipment that have yet to generate revenue.
(Reporting by Harshita Mary Varghese in Bengaluru; Editing by Shilpi Majumdar)
