Company: SLNH
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001756
Chunk: 55

Company: Soluna Holdings, Inc
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 55
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 Related to the SEPA

Substantial blocks
of our common stock may be sold into the market as a result of our being party to the SEPA and you may experience immediate and substantial
dilution in the net tangible book value per share of our common stock.

The price of our common stock
could decline if there are substantial sales of shares of our common stock, if there is a large number of shares of our common stock available
for sale, or if there is the perception that these sales could occur.

Any issuances of shares of
our common stock pursuant to the terms of the Standby Equity Purchase Agreement, dated August 12, 2024 (“SEPA”), between the
Company and YA II PN, Ltd. (“YA”), will dilute the percentage ownership of stockholders and may dilute the per share projected
earnings (if any) or book value of our common stock. Sales of a substantial number of shares of our common stock in the public market
or other issuances of shares of our common stock, or the perception that these sales or issuances could occur, could cause the market
price of our common stock to decline and may make it more difficult for you to sell your shares at a time and price that you deem appropriate.
Additionally, the offering price per share of our common stock under the SEPA may or may not exceed the net tangible book value per share
of our common stock outstanding prior to the offering under the SEPA.

It is not possible
to predict the actual number of shares we will sell under the SEPA, or the actual gross proceeds resulting from those sales.

The SEPA provides that, during
the term of the agreement, and subject to issuance and effective registration of the shares issued thereunder and certain obligations
and limitations, we may, at our discretion, from time to time direct YA to purchase our shares of common stock from us in one or more
purchases under the agreement, for a maximum aggregate purchase price of up to $25 million. The purchase price per share to be paid by
YA for the shares of common stock that we may elect to sell to YA under the SEPA, if any, will fluctuate based on the market prices of
our shares of common stock at the time we elect to sell shares to YA pursuant to the SEPA. Therefore, it is not possible for us to predict
the number of shares of common stock that we will sell to YA under the SEPA, the purchase price per share that YA will pay