Applied Blockchain Announces Expiration of Share Lock-Up

Rhea-AI Summary

Applied Blockchain (Nasdaq: APLD) has announced the expiration of a lock-up agreement related to its initial public offering. This involved the conversion of 2,040,000 shares of preferred stock into 36,441,489 shares of common stock, effective after a reverse stock split. The shares became tradable on June 11, 2022, following an effective Registration Statement on Form S-1. Applied Blockchain operates data centers across North America that support blockchain infrastructure and Bitcoin mining, partnering with industry leaders to enhance its business.

Positive

• Expiration of lock-up agreement allows for increased liquidity of shares.
• Conversion of preferred stock to common stock enhances capital structure.

Negative

• Potential for share dilution due to increased common stock availability.

DALLAS, June 13, 2022 (GLOBE NEWSWIRE) -- Applied Blockchain, Inc. (Nasdaq: APLD) ("Applied Blockchain" or the "Company") today announced the expiration of a share lock-up agreement. In connection with the Company’s initial public offering, on April 12, 2022, 2,040,000 shares of previously existing Applied Blockchain preferred stock were converted into 36,441,489 shares of the Company’s common stock (after giving effect to a one-for-six reverse stock split). The converted stock was restricted from sale until June 11, 2022, after which the shares became freely tradeable pursuant to an effective Registration Statement on Form S-1 (Reg. No. 333-258818).

About Applied Blockchain
Applied Blockchain, Inc. (Nasdaq: APLD) is a builder and operator of next-generation data centers across North America, which provide substantial compute power to blockchain infrastructure and support Bitcoin mining. The Company has partnered with some of the most recognized names in the industry to develop, deploy, and scale its business. Find more information at www.appliedblockchaininc.com. Follow us on Twitter at @APLDBlockchain.

Investor Relations Contacts
Matt Glover or Jeff Grampp, CFA
Gateway Group, Inc.
(949) 574-3860
APLD@gatewayir.com

Media Contact
Catherine Adcock
Gateway Group, Inc.
(949) 574-3860
APLD@gatewayir.com

FAQ

What does the expiration of the lock-up agreement mean for APLD?

The expiration allows previously restricted shares to be traded, increasing liquidity.

How many shares were converted into common stock for APLD?

2,040,000 shares of preferred stock were converted into 36,441,489 shares of common stock.

When did the shares of APLD become tradable?

The shares became freely tradable on June 11, 2022.

What is Applied Blockchain's primary business activity?

Applied Blockchain builds and operates data centers that support blockchain infrastructure and Bitcoin mining.

What is the significance of the Registration Statement on Form S-1 for APLD?

The Registration Statement on Form S-1 made it possible for the converted shares to be freely traded.