Company: SLNH
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010886
Chunk: 141

Company: Soluna Holdings, Inc
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 141
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 2025 and
December 31, 2024 there were 4,953,545 shares of Series A Preferred Stock issued and outstanding, and as of March 31, 2025 and December
31, 2024 there was 62,500 shares of Series B Preferred Stock issued and outstanding.

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Series A Preferred Stock

The Series A Preferred Stock is not convertible into
or exchangeable into common stock of the Company, except upon the occurrence of a delisting event or change of control. Per the Company’s
Certificate of Designations, Preferences and Rights of 9.0% Series A Cumulative Perpetual Preferred Stock (“Series A Certificate
of Designations”), if there is an occurrence of delisting or change of control, the holders of Series A Preferred Stock will have
the right to convert the number of preferred A shares into a number of common shares by the lesser of (a) the sum of the $25.00 liquidation
preference per share of Series A Preferred Stock plus the amount of any accumulated and unpaid dividends divided by the closing price
of the common stock on ten consecutive trading days preceding a delisting event, or (b) the share cap of 0.2817.

Series B Preferred Stock

On July 19, 2022, the Company entered into a Securities
Purchase Agreement (the “Series B SPA”) with an accredited investor (the “Series B Investor”) pursuant to which
the Company sold to the Series B Investor 62,500 shares of Series B Preferred Stock, for a purchase price of $5,000,000. The shares of
Series B Preferred Stock are initially convertible, subject to certain conditions, into 46,211 shares of common stock, at a price per
share of $135.25 per share, a 20% premium to the closing price of the common stock on July 18, 2022, subject to adjustment as set forth
in the Certificate of Designations of Preferences, Rights and Limitations for the Series B Preferred Stock (“Series B Certificate
of Designations”). On October 1, 2024, the Company agreed, as a condition of a waiver of the Series B Investor’s’ right
of first refusal and participation rights in connection with the SEPA, to reduce the conversion price to $5.00 upon stockholder approval,
which was obtained on November 15, 2024.

In addition, in 2022, the Company issued to the Series
B