Company: SLNH
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010886
Chunk: 151

Company: Soluna Holdings, Inc
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 151
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 SCI, which was formed expressly for this purpose, and to provide SCI with the opportunity to directly employ
or retain the services of four individuals whose services it had retained through HEL prior to the merger. As a result of the merger,
each share of common stock of Soluna Callisto issued and outstanding immediately prior to the effective time of the merger, other than
shares owned by the Company or any of our subsidiaries, was cancelled and converted into the right to receive a proportionate share of
the Merger Consideration.

In connection with the Soluna Callisto acquisition,
effective as of October 29, 2021, upon and subject to the terms and conditions of the Termination Agreement, on November 5, 2021: (1)
the existing Operating and Management Agreements between HEL and SCI were terminated in all respects; and (2)(A) SCI paid HEL $725 thousand,
(B) SHI issued to HEL the Termination Shares, and (C) HEL and SHI entered into an Amended and Restated Contingent Rights Agreement that,
among other things, amended the existing Contingent Rights Agreement by and between HEL and SHI, dated January 13, 2020, to provide SHI
the right to invest directly in certain cryptocurrency mining opportunities being pursued by HEL. SHI filed a registration statement with
the SEC to register the resale of the Termination Shares on February 14, 2022.

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Due to conditions being met within the
Merger Agreement in relation to energization and retention of employees, the Company has advised SCI US Holdings LLC, a Delaware limited
liability company, who is the sole Effective Time Holder (as defined in the Merger Agreement) of the right to receive the Merger Shares
of the Company and that 19,800
Merger Shares were issued on May 26, 2023 and 39,600
Merger Shares were issued on October 10, 2023. SCI US Holdings LLC has consented to the issuance of such Merger Shares as required
under the Merger Agreement and has directed the Company to issue such Merger Shares to its affiliate, HEL. Following the issuance of
the 59,400
Merger Shares, a total of 59,400
Merger Shares remains available for possible issuance through October 29, 2026 pursuant to the terms of the Merger Agreement.

Several of HEL’s equity holders are affiliated
with Brookstone Partners, the investment firm that