Company: SLNH
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001756
Chunk: 969

Company: Soluna Holdings, Inc
Filing Date: 2025-03-31
Form: 10-K
Item: Item 2
Chunk 969
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US Holdings LLC, a Delaware limited liability company, who is the sole Effective Time Holder (as defined in the Merger Agreement) of
the right to receive the Merger Shares and that 19,800 Merger Shares were issued on April 19, 2024 and 39,600 Merger Shares were issued
on October 10, 2023. SCI US Holdings LLC has consented to the issuance of such Merger Shares as required under the Merger Agreement and
has directed the Company to issue such Merger Shares to its affiliate, HEL. Following the issuance of the 59,400 Merger Shares, a total
of 59,400 Merger Shares remain available for possible issuance pursuant to the terms of the Merger Agreement.

Several
of HEL’s equity holders are affiliated with Brookstone Partners, the investment firm that holds an equity interest in the Company
through Brookstone XXIV. The Company’s two Brookstone-affiliated directors also serve as directors and, in one case, as an officer,
of HEL and also have ownership interest in HEL. In light of these relationships, the various transactions by and between the Company
and SCI, on the one hand, and HEL, on the other hand, were negotiated on behalf of the Company and SCI via an independent investment
committee of the Board and separate legal representation. The transactions were subsequently unanimously approved by both the independent
investment committee and the full Board.

Four
of the Company’s directors have various affiliations with HEL.

Michael
Toporek, the former Chief Executive Officer, and current Executive Director of the Company, owns (i) 90% of the equity of Soluna Technologies
Investment I, LLC, which owns 57.9% of HEL and (ii) 100% of the equity of MJT Park Investors, Inc., which owns 3.1% of HEL, in each case,
on a fully diluted basis. Mr. Toporek does not own directly, or indirectly, any equity interest in Tera Joule, LLC (“Tera Joule”),
which owns 9.2% of HEL; however, as a result of his 100% ownership of Brookstone IAC, Inc. (“Brookstone IAC”), which is the
manager of Tera Joule, he has dispositive power over the equity interests that Tera Joule owns in HEL.

In
addition, one of the Company’s directors, Matthew E. Lipman, serves as a director and is