Company: SLNH
Filing Date: 2025-04-25
Form Type: 424B3
Source: 0001641172-25-006194
Chunk: 12

Company: Soluna Holdings, Inc
Filing Date: 2025-04-25
Form: 424B3
Chunk 12
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 HPE sent notice of its termination
of the HPE Agreement for cause, effective immediately, due to CloudCo’s material breach of its payment obligations that remained
uncured for more than thirty (30) days. In accordance with the terms of the HPE Agreement, upon a termination for cause by HPE, CloudCo
must pay HPE the remaining payment stream under the term of the HPE Agreement of approximately $19.3 million as of March 31, 2025, including
all upfront payments and monthly charges, plus any fees incurred for the terminated Services (as defined in the HPE Agreement).

SEPA

As described elsewhere in this prospectus, on August
12, 2024, we entered into the SEPA with the Investor. For additional information, see “The Standby Equity Purchase Agreement”
on page 9 of this prospectus.

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Assignment and Assumption Agreements

CloudCo, Soluna Cloud, and the Company, entered into
assignment and assumption agreements on October 1, 2024, with one of the accredited investors issued convertible notes and Class A, Class
B and Class C common stock purchase warrants on October 25, 2021 (the “ Purchasers”),
and two other parties introduced by that Purchaser, with respect to an aggregate of $1.25 million of notes (“Additional Notes”)
issued by CloudCo (the “Assignment Agreements”). Pursuant to the Assignment Agreements, we will be able to purchase such notes
for a purchase price of $750 thousand, or 60% of face value. The assignment and assumption will be effective once all conditions of the
agreement are met including fulfilling the purchase price. As of December 31, 2024, the assignment and assumption of the Additional Notes
has not been become effective, however on March 14, 2025, the Company has fulfilled the agreement and assumed the assignment and assumption
of the Additional Notes for the remaining outstanding balance.

Galaxy Note

On March 12, 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 the Company, entered into
a Loan Agreement (the “Galaxy Loan Agreement”) with SW Holdings and Galaxy Digital LLC (the “Lender”). The Galaxy
Loan