Applied Digital Corporation (APLD) has completed the previously announced divestiture of its cloud business. The business was contributed to Ekso Bionics Holdings, Inc., which has been renamed ChronoScale Corporation and now trades on Nasdaq under the ticker "CHRN". In exchange for the cloud business, APLD received stock representing an approximate 97% ownership stake in ChronoScale. APLD also made an additional equity investment of $15.75 million into the new entity.
Key Details
- Transaction Close: The transaction closed on May 5, 2026. APLD contributed its cloud subsidiary in exchange for 138,216,820 shares of ChronoScale, resulting in APLD holding a 97% stake.
- Private Placement: Immediately prior to closing, APLD made a $15.75 million equity investment in ChronoScale, purchasing 1,311,407 shares at $12.01 per share.
- Investor & Service Agreements: APLD entered into an Investor Rights Agreement that grants it the right to designate four of seven directors on ChronoScale's board (as long as it owns at least 50%) and provides significant approval rights over key corporate actions. APLD will also provide management and corporate services to ChronoScale for a fee equal to 1% of gross revenue per quarter plus other service fees.