Applied Digital Corporation (NASDAQ: APLD) completed the separation of its cloud business, establishing ChronoScale Corporation as an independent public company that began trading on the Nasdaq Capital Market under ticker CHRN.

The transaction involved Applied Digital contributing its cloud business to EKSO Bionics Holdings, which then changed its name to ChronoScale Corporation. Applied Digital received approximately 138 million shares of ChronoScale common stock for the contribution and invested an additional $15.75 million in cash for approximately 1.4 million additional shares through a private placement offering.

Following the transaction, Applied Digital retains ownership of approximately 97% of ChronoScale's outstanding common stock. ChronoScale will operate as a compute platform focused on artificial intelligence workloads, providing GPU-based infrastructure for AI training, inference, and high-performance computing.

"Our data center hosting platform is built on long-duration contracts and predictable infrastructure returns, while the cloud compute layer operates on shorter cycles with a different risk profile," said Wes Cummins, Chairman and CEO of Applied Digital. "We believe separating these businesses allows each to be capitalized and scaled appropriately."

The new structure positions ChronoScale to access capital and expand capacity independently while allowing Applied Digital to focus on its data center hosting business. The legacy EKSO business will continue operating as a wholly owned subsidiary of ChronoScale.

Lowenstein Sandler LLP served as legal advisor to Applied Digital, while Wilson Sonsini Goodrich & Rosatti LLP acted as legal advisor to EKSO and Lake Street served as financial advisor to EKSO.