Soluna Holdings, Inc. Announces Series B Convertible Preferred Financing and Amendment to Convertible Note
July 20 2022 - 5:04PM
via NewMediaWire – Soluna Holdings, Inc. (“SHI” or the “Company”),
(NASDAQ: SLNH), the parent company of Soluna Computing, Inc.
(“SCI”), a developer of green data centers for cryptocurrency
mining and other intensive computing, today announced two recent
financing developments that serve to increase capital structure
flexibility and fund the Company’s near-term growth pipeline.
The developments, which involved several longstanding investors in
the Company, are intended to enable the Company to continue to
execute on its business plan notwithstanding the current market
volatility including drawing down an initial tranche of the
previously announced project financing from funds managed by Spring
Lane Capital for Dorothy 1 in the coming weeks.
Convertible Note Amendment
The Company reached an agreement with the Noteholders to amend
the terms on the remaining balance of approximately $13,000,000 of
convertible notes issued in October of 2021. The notes will
restrike the conversion price up to 3 times at a 20% discount to
the 5-day VWAP. The notes currently have a fixed conversion price
of $9.18. In partial consideration of the amendment to the notes,
the Noteholders agreed to release certain collateral covered by
their security agreement to permit the Company to proceed forward
with the initial phase of the Dorothy project and release the
Spring Lane project financing, which the Company intends on
completing in the near future.
Series B Preferred Issuance
On 07/19/2022 The Company issued $5,000,000 Convertible
Preferred Series B Stock (the “Preferred B”) with a 3 year term via
a direct private placement to a current investor. The conversion
price is a 20% premium to the close of the Company’s common stock
on July 18, or $5.41 per share. The Preferred B includes a 10%
dividend that may be paid in cash or stock annually or at
conversion. The holder also retired warrants for 1,000,000 common
shares with an exercise price at $11.50 and received new warrants
for 1,000,000 common shares with an exercise price at $10.00.
Commenting on the financing progress, CEO of Soluna Holdings
Michael Toporek commented, “This is a critical development for our
company and our stockholders. At a particularly challenging time in
the capital markets, the new financing arrangements provide our
company with a significantly more flexible capital structure to
continue to execute on our business plan. In today’s capital
markets environment, it is important to have the support and
continued participation of investors that believe in Soluna’s
investment thesis.”
About Soluna Holdings, Inc.
Soluna Holdings, Inc. (Nasdaq: SLNH) is the leading developer of
green data centers that convert excess renewable energy into global
computing resources. Soluna builds modular, scalable data centers
for computing intensive, batchable applications such as
cryptocurrency mining, AI and machine learning. Soluna provides a
cost-effective alternative to battery storage or transmission
lines. Soluna uses technology and intentional design to solve
complex, real-world challenges. Up to 30% of the power of renewable
energy projects can go to waste. Soluna’s data centers enable clean
energy asset owners to ‘Sell. Every. Megawatt.’
For more information about Soluna, please visit
www.solunacomputing.com or follow us on LinkedIn at
linkedin.com/solunaholdings and Twitter
@SolunaHoldings.
Forward Looking Statements
The statements in this press release with respect to the payment
of dividends on the Series B Preferred Stock constitute
forward-looking statements within the meaning of the federal
securities laws. Forward-looking statements reflect management’s
current expectations, as of the date of this press release, and are
subject to certain risks and uncertainties that could cause actual
results to differ materially from future results expressed or
implied by such forward-looking statements. Actual results could
differ materially from those expressed or implied by such
forward-looking statements as a result of various factors,
including, but not limited to: (1) those risk factors set forth in
the Company’s Registration Statement on Form S-1 (File No.
333-257300), as amended; and (2) other risks and uncertainties that
may be detailed from time to time in SHI’s reports filed with the
SEC. Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date made.
Except as required by law, the Company assumes no obligation to
update or revise any forward-looking statements.
Contact Information:
Chris GandolfoFinancial Reporting ManagerSoluna
Holdingschristopher@soluna.io+518 218 2565
MZ ContactBrian M. Prenoveau, CFAMZ Group – MZ North
AmericaSLNH@mzgroup.us+561 489 5315
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