Company: SLNH
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001756
Chunk: 1882

Company: Soluna Holdings, Inc
Filing Date: 2025-03-31
Form: 10-K
Item: Item 7
Chunk 1882
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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, without first paying all of the principal and interest due
under the Note and without first obtaining Investor’s prior written consent.

The net proceeds from dispositions
of the Escrow Shares (i) at a price of up to $4.00 per share shall be applied to reduce the outstanding principal balance of the Note
and (ii) at a price greater than $4.00 per share shall be applied first to reduce the outstanding principal balance of the Note in an
amount equal to $4.00 per share of our common stock and then to the Investor.

Also under the Modification Agreement,
we agreed to register for resale the Escrow Shares and Conversion Shares (together, the “Registrable Securities”)
as promptly as commercially practicable, as determined by us, following the registration for resale of certain other securities.
We also agreed to register for resale the shares of our common stock issuable upon exercise of the Warrant as promptly as commercially
practicable, as determined by us, after the issuance of the Warrant.

46

Project
Specific Developments

Project
Dorothy 2

We are constructing Project Dorothy 2 which is a 48MW expansion of our
flagship Project Dorothy that will be dedicated to Bitcoin Hosting. The site is expected to energize soon in the second quarter of 2025.
This will enable the commencement of the commissioning of the first of 3 phases, each of 16MW, that will occur between May and October
2025 when the site is expected to be fully operational. As each phase is commissioned, it will begin to generate revenue, both due to
Bitcoin Hosting and Demand Response Services.

Project
Rosa

We
are developing Project Rosa which is expected to be a 187MW data center for AI and Bitcoin hosting and other computing-intensive applications,
as well as joint venture potential. It will be co-located with a wind farm in Texas. We have signed term sheets for both power and land