Company: SLNH
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001756
Chunk: 1296

Company: Soluna Holdings, Inc
Filing Date: 2025-03-31
Form: 10-K
Item: Item 4
Chunk 1296
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2025, Soluna SW LLC (the “SW Borrower”), a Delaware limited liability company and a subsidiary of Soluna SW Holdings
LLC (“SW Holdings”), a Delaware limited liability company and a subsidiary of Soluna Digital, Inc. (“SDI”),
a Nevada corporation and a subsidiary of Soluna Holdings, Inc. (the “Company”), entered into a Loan Agreement (the “Galaxy Loan Agreement”) with SW Holdings and Galaxy Digital LLC (the “Lender”). The Galaxy Loan Agreement comprises
a term loan facility in the principal amount of $5.0 million (the “Term Loan Facility”). The Term Loan Facility bears interest
at 15.0% per annum, unless an Event of Default (as defined therein) has occurred and is continuing,
in which case the Galaxy Term Loan Facility shall bear interest at a rate of 5% above the then applicable interest rate. The Term
Loan Facility will mature on March 12, 2030 and will be paid over a five-year term.

June SPA Modification

On June 20, 2024, pursuant to the terms and subject to the conditions of
a Note Purchase Agreement (the “June SPA”) by and among (i) Soluna AL CloudCo, LLC, a Delaware limited liability company (“CloudCo”),
and indirect wholly owned subsidiary of the Company, (ii) Soluna Cloud, Inc., a Nevada corporation, indirect wholly owned subsidiary of
the Company, and parent of CloudCo (“Soluna Cloud”), (iii) the Company and (iv) the accredited investor named therein (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”).

On March 23, 2025, the
Note Parties entered into a Modification Agreement (the “Modification Agreement”) to, among other things, (i) provide
for the deposit of 1,000,000 shares (the “Escrow Shares”) of our common stock into an escrow account maintained by
Northland Securities, Inc., pursuant to an escrow agreement (as further described below), (ii) provide for the issuance to the
Investor of a warrant to purchase shares of our common stock upon the release by the Investor of its lien on our property, (iii) amend the payment schedule of the Note to provide (a) for each of the six scheduled payments occurring after the
earlier of