Company: HSDTW
Filing Date: 2025-03-25
Form Type: DEF 14A
Source: 0001558370-25-003622
Chunk: 48

Company: Solana Co
Filing Date: 2025-03-25
Form: DEF 14A
Chunk 48
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**Overview**

At the Annual Meeting, holders of our Common Stock will be asked to approve the issuance of up to 6,213,888 shares of our outstanding Common Stock (“Inducement Warrant Shares”) upon the exercise of our Series C warrants and Series D warrants (the “Inducement Warrants”), with the right for such potential exercise to occur immediately following the date upon which the stockholders approve this proposal, for purposes of compliance with Nasdaq Rule 5635(d) and as required by the Inducement Letters (as defined below) entered into with certain holders of our outstanding Series A warrants and Series B warrants (the “Existing Warrants”).

As a material condition of the warrant inducement described below, the Company agreed to submit and recommend this proposal to the stockholders. The Board believes that the terms of the Inducement Warrants and the exercise thereof and this proposal are in the best interests of the Company and its stockholders in order to fulfill and meet its contractual commitments made pursuant to the Inducement Letters. Under the Inducement Letters, we agreed to use our commercially reasonable efforts to hold a special meeting of stockholders on or before April 21, 2025 to obtain stockholder approval for the exercise of the Inducement Warrants, with the recommendation of the Board that such proposal be approved. We agreed that we would solicit proxies from our stockholders in connection with such proposal in the same manner as all other management proposals in the proxy statement and that all management-appointed proxyholders would vote their proxies in favor of such proposal. If we do not obtain stockholder approval of this proposal at the Annual Meeting, we have agreed to call a meeting of stockholders every 90 days thereafter to seek stockholder approval until stockholder approval is obtained (“stockholder approval”).

**Description of the Inducement Offer**

On January 21, 2025, the Company entered into warrant exercise inducement offer letters (the “Inducement Letters”) with certain holders (the “Inducement Warrant Holders”) of its Existing Warrants, pursuant to which the Inducement Warrant Holders agreed to exercise for cash their Existing Warrants to purchase an aggregate of 4,971,110 shares of the Company’s common stock, in the aggregate, at a reduced exercise price of $0.751 per share, in exchange for the Company’s agreement to the Inducement Warrants on substantially the same terms as the Existing Warrants described below, to purchase