DALLAS - Applied Digital Corporation (NASDAQ:APLD), a company specializing in digital infrastructure for High-Performance Computing (HPC) applications, announced the appointment of Ella Benson as an independent director to its Board of Directors, set to take effect on May 6, 2024.
Benson, who also assumes the role of Chairperson of the Nominating and Governance Committee, brings with her over a decade of financial services experience, including her current position as a Director at Oasis Management Co., Ltd.
The appointment is part of a Cooperation and Standstill Agreement with Oasis Management, which outlines the cessation of further stock accumulations by Oasis beyond 9.9% of Applied Digital's outstanding shares and limits certain activities during Benson's tenure, anticipated to last until the company's November 2026 Annual Meeting of Shareholders.
Benson's background includes a tenure as an analyst at GAM, an independent asset management firm, from 2009 to 2013, and she holds a Bachelor of Business Administration in Finance from the University of Texas at Austin. Her experience is expected to be beneficial to Applied Digital's strategic direction and oversight as the company continues to grow its hosting and service offerings.
Oasis Management, an investor in Applied Digital, currently holds approximately 4.2% of the company's common stock. The investment firm has been involved with Applied Digital through its private investment funds, which focus on a diverse range of asset classes and sectors.
This board appointment comes as Applied Digital aims to expand its data center operations across North America, catering to the increasing demand for HPC solutions. The company's infrastructure supports major hyperscalers and enterprises running AI workloads.
The details of the Cooperation and Standstand Agreement are documented in a Form 8-K filed with the U.S. Securities and Exchange Commission on April 30, 2024. This announcement is based on a press release statement from Applied Digital Corporation.
InvestingPro Insights
As Applied Digital Corporation (NASDAQ:APLD) welcomes Ella Benson to its Board of Directors, the company's financial and market metrics provide additional context to its current position in the market. According to InvestingPro data, Applied Digital has a market capitalization of $332.62 million. Although the company has shown an impressive revenue growth of 252.07% over the last twelve months as of Q3 2024, its gross profit margin stands at 18.09%, reflecting challenges in profitability.
InvestingPro Tips indicate that analysts are concerned about Applied Digital's financial health. The company is grappling with a significant debt burden and is quickly burning through cash.
Furthermore, analysts have revised their earnings downwards for the upcoming period, and they do not anticipate the company will be profitable this year. Moreover, with a price that has fallen significantly over the last three months, the stock's performance has been quite volatile, marking a 36.68% decline in the past month alone.
For investors interested in a deeper analysis of Applied Digital's financials and future outlook, there are 18 additional InvestingPro Tips available at https://www.investing.com/pro/APLD. These could provide valuable insights into the company's operational and financial strategies following the new board appointment. Readers can also take advantage of a special offer using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.