Company: SLNH
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023503
Chunk: 60

Company: Soluna Holdings, Inc
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 60
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 liability company, who is the sole Effective Time Holder (as defined in the Merger Agreement) of
the right to receive the Merger Shares of the Company 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 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 remains available for possible issuance through October 29, 2026 pursuant to the terms of the
Merger Agreement as of September 30, 2025. On October 8, 2025, the Company issued an additional 17,820 Merger Shares, due to 30 MW of
energization being met, as such as of the date of these condensed financial statements, a total of 41,580 Merger Shares remains available
for possible issuance through October 29, 2026.

Several
of HEL’s equity holders are affiliated with Brookstone Partners, the investment firm that previously held an equity interest in
the Company through Brookstone Partners Acquisition XXIV, LLC. 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 Chairman of the Board, 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, which