Company: SLNH
Filing Date: 2025-03-18
Form Type: 8-K
Source: 0001493152-25-010691
Chunk: 0

Company: Soluna Holdings, Inc
Filing Date: 2025-03-18
Form: 8-K
Item: Item 1.01
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Item
1.01 Entry into a Material Definitive Agreement.

On
March 12, 2025, Soluna SW LLC (the “ Borrower”), a Delaware limited liability company and a subsidiary of Soluna SW Holdings,
LLC (“ Holdings”, and together with the Borrower, the “ Loan Parties”), a Delaware limited liability
company and a subsidiary of Soluna Digital, Inc. (“ Parent”), a Nevada corporation and a subsidiary of the Soluna Holdings,
Inc. (the “ Company”), entered into a Loan Agreement (the “ Loan Agreement”) with Holdings and Galaxy Digital LLC
(the “ Lender”). The Loan Agreement comprises a term loan facility in the principal amount of $5 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 Term Loan Facility shall bear interest at a rate of
5% above the then applicable interest rate.

The
Borrower may voluntarily prepay all or part of the Term Loan Facility at any time together with accrued and unpaid interest on
the principal amount to be prepaid up to the date of prepayment. The Borrower shall prepay all or part of the Term Loan Facility with
100% of the Net Cash Proceeds (as defined therein) received upon the occurrence of (i) an Asset Sale or Casualty Event (each as defined
therein), (ii) an Equity Issuance (as defined therein), (iii) an issuance or incurrence of Indebtedness (as defined therein), or (iv)
an Extraordinary Receipt (as defined therein), each subject to certain exceptions. In addition,
certain principal payments are subject to the payment of a premium amount equal to 50% of the remaining amount of interest payable on
such principal amount through the scheduled maturity date, if paid on or prior to the 30-month anniversary of the closing date, and 25%
of the remaining amount of interest payable on such principal amount through the scheduled maturity date, if paid after the 30-month
anniversary of the closing date.

The
Loan Agreement includes certain restrictions (subject to certain exceptions outlined in the Loan Agreement) on the ability of the Loan
Parties and their subsidiaries to undertake certain activities, including to incur indebtedness and liens, enter into sale
or lease-back transactions, merge or consolidate with other entities, dispose or transfer their assets, pay dividends or make distributions