Soluna Inks Agreement with Noteholders to Bolster Balance Sheet Ahead of Halving
Includes
John Belizaire, CEO of Soluna Holdings, commented, “We are progressively tuning our capital formation approach to take advantage of the growth opportunities on the horizon for the company. This amendment is part of a multi-prong approach to support our scaling plans.”
The Company and the noteholders entered into a fourth amendment effective as of February 28, 2024 allowing the Company to raise
In addition, the Company will be permitted to unilaterally extend the maturity date of the notes for two 3-Month extensions if prior to the then-in-effect maturity date, the Company gives notice to the noteholders and increases the principal amount of the notes on the date of each such extension by two percent (
In consideration of the new rights described above, the Company will:
-
Reduce the conversion price of the convertible notes to
per share;$3.78 -
The noteholders will receive an aggregate of 850,000 three-year warrants exercisable at
per share;$0.01
In addition, the Company will implement a warrant program to provide up to
-
An aggregate of 320,005 warrants held by the noteholders will have the exercise price reduced to
per share;$3.78 -
An aggregate of 478,951 warrants held by the noteholders will have the exercise price reduced to
per share (Repriced Warrants). For every one Repriced Warrant exercised by a Purchaser, such Purchaser shall receive 1.36 new five-year warrants with an exercise price of$6.00 , 1.6 new five-year warrants with an exercise price of$0.01 , and 1.6 new five-year warrants with an exercise price of$4.20 . Pursuant to additional agreements with holders of another 46,618 outstanding warrants the resulting total of Repriced Warrants is 530,569.$5.70
The foregoing is subject to stockholder approval at the Company’s annual meeting of shareholders, to be held no later than May 30, 2024.
The text of the amendment is included in an 8-K to be filed with the Securities and Exchange Commission.
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the
About Soluna Holdings, Inc (SLNH)
Soluna is on a mission to make renewable energy a global superpower using computing as a catalyst. The company designs, develops and operates digital infrastructure that transforms surplus renewable energy into global computing resources. Soluna’s pioneering data centers are strategically co-located with wind, solar, or hydroelectric power plants to support high-performance computing applications including Bitcoin Mining, Generative AI, and other compute intensive applications. Soluna’s proprietary software MaestroOS(™) helps energize a greener grid while delivering cost-effective and sustainable computing solutions, and superior returns. To learn more visit solunacomputing.com. Follow us on X (formerly Twitter) at @SolunaHoldings.
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Sam Sova
Partner and CEO
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Source: Soluna Holdings, Inc.