Company: SLNH
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001756
Chunk: 1443

Company: Soluna Holdings, Inc
Filing Date: 2025-03-31
Form: 10-K
Item: Item 4
Chunk 1443
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 (the “Investor”, and collectively the “Note Parties”), CloudCo issued to the Investor
a secured promissory note in a principal amount equal to $12.5 million (the “Note”). The Note accrues interest at a rate
9.0% per annum, subject to adjustment upon an event of default. The Note matures on June 20, 2027. CloudCo’s obligations under
the Note will be secured by all or substantially all of CloudCo’s assets, including pursuant to a security agreement to be executed
and delivered by CloudCo in favor of the Investor (the “CloudCo Security Agreement”, and together with the June SPA and the
Note, the “CloudCo Agreements”).

As
further inducement for the Investor to purchase the Note, Soluna Cloud issued to the Investor a warrant (the “Warrant”) exercisable
within three years from June 20, 2024 for a number of shares of common stock of Soluna Cloud equal to the sum of (a) 12.5% of Soluna
Cloud’s issued and outstanding common stock as of the date of the Warrant divided by 0.875, plus (b) the percentage of each Qualified
Issuance (as defined below) divided by 0.875. For purposes of the Warrant, “Qualified Issuance” means (y) each issuance of
common stock of Soluna Cloud during the period commencing on the day after the date of the Warrant and ending on the earlier to occur
of (i) the conclusion of up to an additional $112.5 million of capital raised, whether in the form of debt, equity, mixed or otherwise,
by Soluna Cloud and its subsidiaries and (ii) December 31, 2024 and (z) the number of shares of common stock of Soluna Cloud issuable
upon the exercise or conversion of any convertible securities of CloudCo issued during such period (other than certain issuances pursuant
to CloudCo’s equity compensation plans). On June 20, 2024, the Company determined that the warrant should be treated as a warrant
liability and based on valuation, the Company booked a warrant liability of approximately $314 thousand and a related debt discount which
will be amortized over the life of the loan.

On
July 12, 2024, the Company, CloudCo, Soluna Cloud, and the Investor entered into a First Amendment to the Note Purchase Agreement (the