Company: SLNH
Filing Date: 2025-05-22
Form Type: S-1
Source: 0001641172-25-012098
Chunk: 17

Company: Soluna Holdings, Inc
Filing Date: 2025-05-22
Form: S-1
Chunk 17
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 the sale of the Investor Shares on or prior to the last six scheduled payments is less than the Specified Amount (such difference, the “Make Whole Amount”), than the amount of each of the remaining scheduled payments shall be increased by an amount equal to the Make Whole Amount divided by the number of remaining scheduled payments, (iv) modify the Note such that the Note is now convertible into up to 2,500,000 shares (the “Conversion Shares”) of our 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 Investor 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 Investor 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.

Subsequently, we and the Investor mutually agreed
that the 1,000,000 Investor Shares would instead be issued directly to the Investor, and, on April 29, 2025, we issued 1,000,000 shares
of common stock to the Investor.

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