Soluna Holdings, Inc. Extends Maturity Date of October Notes to April 2023
September 13 2022 - 6:14PM
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 that it has
entered into a further amendment to its convertible notes (the
“Notes”) which were issued on October 25, 2021.
The Company has agreed with the noteholders to amend the terms
of the Notes and to extend the Notes’ maturity date until April 25,
2023. The amendment also allows for the Company to have released to
it the $1,000,000 currently on deposit, though by October 17, 2022,
the Company is required to re-escrow this amount. The Company will
also not be required to make the next $950,000 escrow deposit that
would have been due on September 28, 2022 or redeem up to
$2,200,000 of Notes on September 29, 2022.
In exchange for the extension of the maturity date of the Notes,
the Company also agreed to increase the original issue discount
(“OID”) of the Notes by 4%, which increases the balance due from
$12,485,781 to $13,006,022. The Company also issued to the
noteholders (1) 430,564 shares of the Company’s common stock in
exchange for their existing Class B warrants to purchase up to
592,025 shares of common stock and (2) four new classes of
warrants, each to purchase up to 1,000,000 shares of common stock,
at exercise prices $3.50, $4.50, $5.50, and $7.50,
respectively.
In addition, the amended also extended the next conversion price
reset of the Notes from October 5, 2022, to October 10, 2022.
At any time until October 17, 2022, the noteholders have the option
to convert up to $1,000,000 of the Notes to shares of the Company’s
common stock at a conversion price of $2.2186, which reflects a
twenty percent (20%) discount to the five-day volume weighted
average price (VWAP) as of the close of trading on September 12,
2022. None of the other material terms of the Notes, as previously
amended, have been further amended.
Commenting on the amendment, Michael Toporek, CEO of Soluna
Holdings, Inc., said, “We are pleased to be able to work with our
noteholders to extend the maturity date of the outstanding Notes.
We believe this transaction provides greater financial flexibility
for the Company in the short term as we build towards energizing
Project Dorothy and provides the noteholders with greater upside
potential as we grow and scale our business over the long
term.”
The Company is also filing a Current Report on Form 8-K with the
Securities Exchange Commission, which will contain additional
information regarding this transaction and will be available on the
Company’s EDGAR page at www.sec.gov.
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 electricity 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 entry
into the amendment with the noteholders and the benefits to the
Company and such holders 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 those risk
factors set forth in the Company’s Annual Report on Form 10-K for
the year ended December 31, 2021 and 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:
Philip F. Patman, Jr.Chief Financial OfficerSoluna Holdings,
Inc.ppatman@soluna.io713.906.5705
MZ ContactBrian M. Prenoveau, CFAMZ Group – MZ North
AmericaSLNH@mzgroup.us561.489.5315
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