Company: SLNH
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001756
Chunk: 1642

Company: Soluna Holdings, Inc
Filing Date: 2025-03-31
Form: 10-K
Item: Item 5
Chunk 1642
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 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 Investor 60,000 common stock purchase warrants (the “Series B Warrants”)
to purchase up to an aggregate of shares of common stock. In connection with the above referenced waiver, the exercise price of these
warrants was reduced to $0.01 per share and an additional 140,000 warrants exercisable for $0.01 per share were issued. The Series B
Investor is entitled to exercise the Series B Warrants at any time on or prior to January 19, 2028.

Effective
from October 1, 2024, the sale of common stock as a result of conversion of Series B Preferred Stock and exercise of the