Company: SLNH
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001756
Chunk: 286

Company: Soluna Holdings, Inc
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 286
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 the corporation in the election of directors: (i) one-fifth or more but less than one-third;
(ii) one-third or more but less than a majority; or (iii) a majority or more. The ability to exercise such voting power may be direct
or indirect, as well as individual or in association with others.

The effect of the control
share law is that the acquiring person, and those acting in association with it, obtains only such voting rights in the control shares
as are conferred by a resolution of the stockholders of the corporation, approved at a special or annual meeting of stockholders. The
control share law contemplates that voting rights will be considered only once by the other stockholders. Thus, there is no authority
to strip voting rights from the control shares of an acquiring person once those rights have been approved. If the stockholders do not
grant voting rights to the control shares acquired by an acquiring person, those shares do not become permanent non-voting shares. The
acquiring person is free to sell its shares to others. If the buyers of those shares themselves do not acquire a controlling interest,
their shares do not become governed by the control share law. If control shares are accorded full voting rights and the acquiring person
has acquired control shares with a majority or more of the voting power, any stockholder of record, other than an acquiring person, who
has not voted in favor of approval of voting rights is entitled to demand fair value for the redemption of such stockholder’s shares.
Nevada’s control share law may have the effect of discouraging takeovers of the corporation.

In addition to the control
share law, Nevada has a business combination law which prohibits certain business combinations between Nevada corporations and “interested
stockholders” for two years after the “interested stockholder” first becomes an “interested stockholder,”
unless our Board approves the combination in advance or thereafter by both the Board and 60% of the disinterested stockholders. For purposes
of Nevada law, an “interested stockholder” is any person who is (i) the beneficial owner, directly or indirectly, of ten percent
or more of the voting power of the outstanding voting shares of the corporation, or (ii) an affiliate or associate of the corporation
and at any time within the two previous years was the beneficial owner, directly or indirectly, of ten percent or more of the voting power
of the then outstanding shares of the corporation. The definition of the term “business combination” is sufficiently