Company: SLNH
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023503
Chunk: 170

Company: Soluna Holdings, Inc
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 170
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 on substantially all assets of the Borrowers
and guarantors, including pledges of equity interests, security interests in deposit and other collateral accounts (subject to control
agreements), and mortgages/deeds of trust on the relevant project sites.

The
Credit Agreement contains customary representations and warranties, affirmative and negative covenants, and events of default for financings
of this type. Events of default under the Credit Agreement include, among other things, non-payment of principal, interest or fees, inaccuracy
of representations and warranties, breach of covenants, cross-default to certain material indebtedness, bankruptcy and insolvency, and
change of control. Upon the occurrence and during the continuance of an event of default, the lenders may declare all outstanding principal
and accrued but unpaid interest under the Credit Agreement immediately due and payable and may exercise the other rights and remedies
provided under the Credit Agreement and related loan documents. Negative covenants in the Credit Agreement include, among other things,
restrictions on the Borrowers and guarantors with respect to incurring additional indebtedness, creating liens on assets, selling assets
or making fundamental changes, making restricted payments, entering into affiliate transactions, and using loan proceeds for unauthorized
purposes. The Credit Agreement also restricts investments, capital expenditures, and speculative transactions, and requires that all
deposit and securities accounts be subject to control agreements. Financial covenants require (i) a minimum trailing Debt Service Coverage
Ratio of 1.60:1.00 and (ii) a minimum Forward Contracted Debt Service Coverage Ratio of 1.20:1.00, in each case as further described
in the Credit Agreement. The facility also includes customary mandatory prepayment provisions.

Pursuant
to the Credit Agreement, the Company issued to Generate Strategic Credit Master Fund I-B, L.P., an affiliate of the Lender and the Agent
(the “Holder”), in a private placement (the “Private Placement”): (i) a pre-funded warrant (the “Generate
Pre-Funded Warrant”) to purchase up to 2,000,000
shares of common stock; and (ii) a
common warrant (the “Generate Common Warrant” and, together with the Generate Pre-Funded Warrant, the “Generate Warrants”)
to purchase up to 2,000,000
shares of common stock.

On
September 28, 2025, the Company executed a side letter with the Holder in relation to 2.0