Company: SLNH
Filing Date: 2025-02-05
Form Type: 424B3
Source: 0001493152-25-005030
Chunk: 212

Company: Soluna Holdings, Inc
Filing Date: 2025-02-05
Form: 424B3
Chunk 212
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1.5million of face value of the Notes in whole or in part at any time up to the maturity date of the Notes, provided that at the time of such conversion the share price on the trading market on which the Company’s shares is then listed exceeds $ 5.00and a minimum volume of 50,000traded each trading day for the five trading days immediately prior to such forced conversion.

As consideration for the reduction in the prepayment penalty and the new forced conversion right, the Company agreed that an aggregate $ 4.7million of the Notes had the conversion price reduced to $ 3.78per share and 150,000of the Warrants had the exercise price reduced to $ 0.01(the “Repriced Warrants”), provided that prior to February 1, 2024, for each $ 31.33in Notes converted by a Noteholder, such Noteholder may exercise one Repriced Warrant and that on February 1, 2024, all Repriced Warrants became immediately exercisable.

With the Second Amendment on May 11, 2023, the principal value was reestablished to approximately $ 13.3million, and a new fair value was established at approximately $ 10.94million. The Second Amendment caused an extinguishment of debt of approximately $ 1.9million which includes a loss on revaluation of the debt of $ 554thousand and warrant valuation of New Class A and Class B warrants of $ 1.3million. In addition, there was a $ 250thousand extension fee cash payment that was included within “Other expense, net” on the consolidated financial statements for the year ended December 31, 2023. The Company had approximately $ 1.6million of note conversions between May 11, 2023 and November 20, 2023 (date of the Third Amendment).

The Company performed a fair value assessment as of November 20, 2023 due to the trigger of extinguishment of debt, and had a debt revaluation loss of approximately $ 911thousand, which included a valuation adjustment for the warrant repricing. The Company had approximately $ 3.1million of note conversions between November 21, 2023 through December 31, 2023. In addition, a fair value assessment was performed as of December 31, 2023, and a $ 584revaluation loss was recorded to adjust the fair value of the convertible debt to