Company: SLNH
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001756
Chunk: 1078

Company: Soluna Holdings, Inc
Filing Date: 2025-03-31
Form: 10-K
Item: Item 2
Chunk 1078
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29, 2021, the Company completed the Soluna Callisto acquisition pursuant
to the merger agreement (the “Merger Agreement”). The purpose of the transaction was for SCI to acquire substantially all
of the assets (other than those assets physically located in Morocco) formerly held by Harmattan Energy, Ltd. (“HEL”), which
assets consisted of SCI’s existing pipeline of certain cryptocurrency mining projects that HEL previously transferred to SCI, which
was formed expressly for this purpose, and to provide SCI with the opportunity to directly employ or retain the services of four individuals
whose services it had retained through HEL prior to the merger. As a result of the merger, each share of common stock of Soluna Callisto
issued and outstanding immediately prior to the effective time of the merger, other than shares owned by the Company or any of our subsidiaries,
was cancelled and converted into the right to receive a proportionate share of the Merger Consideration.

In
connection with the Soluna Callisto acquisition, effective as of October 29, 2021, upon and subject to the terms and conditions of the
Termination Agreement, on November 5, 2021: (1) the existing Operating and Management Agreements between HEL and SCI were terminated
in all respects; and (2)(A) SCI paid HEL $725 thousand, (B) SHI issued to HEL the Termination Shares, and (C) HEL and SHI entered into
an Amended and Restated Contingent Rights Agreement that, among other things, amended the existing Contingent Rights Agreement by and
between HEL and SHI, dated January 13, 2020, to provide SHI the right to invest directly in certain cryptocurrency mining opportunities
being pursued by HEL. SHI filed a registration statement with the SEC to register the resale of the Termination Shares on February 14,
2022.

Due
to conditions being met within the Merger Agreement in relation to energization and retention of employees, the Company has advised SCI
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 May 26, 2023 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