Company: SLNH
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001756
Chunk: 507

Company: Soluna Holdings, Inc
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1B
Chunk 507
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) 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 the effectiveness of a registration statement for the resale of the Registrable Securities (as defined below) or the date
that the Registrable Securities may be sold pursuant to Rule 144 under the Securities Act of 1933, as amended (the “Securities
Act”), without any information requirements, the amount of principal and interest payable on such date shall be reduced by 50%
(the aggregate amount of the six months of such reductions, the “Specified Amount”) and (b) if the aggregate amount of
payments on the Amended Note applied from the proceeds of the sale of the Escrow Shares on or prior to the last six scheduled
payments is less than the Specified Amount (such difference, the “Make Whole Amount”), than the amount of each of the
remaining scheduled payments shall be increased by an amount equal to the Make Whole Amount divided by the number of remaining
scheduled payments, (iv) modify the Note such that the Note is now convertible into up to 2,500,000 shares (the “Conversion
Shares”) of Common Stock based on a conversion price of $5.00, (v) amend the Note to provide that we will be a direct
co-obligor with CloudCo under the Note, and (vi) amend the SPA to allow us to organize or incorporate any subsidiary, over
which we shall have voting or beneficial control, which is being formed with the intent to engage in a business or line of
business substantially similar to that of Soluna Cloud or the Company