Applied Digital Completes Cloud Spin-off, Establishing ChronoScale as Public Entity

Applied Digital Corporation has finalized the spin-off of its cloud business, resulting in the establishment of ChronoScale as an independent public company. The new entity is set to begin trading on the Nasdaq stock exchange under the ticker symbol CHRN following its business combination with EKSO Bionics Holdings. Under the terms of the agreement, Applied Digital will retain a significant majority ownership stake of approximately 97% in the spin-off. Additionally, the parent company has committed to investing $15.75 million at the closing of the transaction to fund initial operations. This strategic move is designed to unlock the value of the cloud segment by allowing it to operate as a pure-play entity. The transaction highlights Applied Digital's commitment to optimizing its corporate structure while maintaining a dominant interest in the high-growth cloud computing sector.