Business
Soluna Holdings, Inc. Announces Series B Convertible Preferred Financing and Amendment to Convertible Note
ALBANY, NY, July 20, 2022 (GLOBE NEWSWIRE) -- via NewMediaWire – Soluna Holdings, Inc. (“SHI” or the “Company”), (NASDAQ: SLNH), the parent company of Soluna
About this update from Soluna Holdings, Inc.
[{"type":"text","content":"ALBANY, NY, July 20, 2022 (GLOBE NEWSWIRE) -- via NewMediaWire – Soluna Holdings, Inc. (“SHI” or the “Company”), (NASDAQ: SLNH), the parent company of Soluna Computing, Inc. (“SCI”), a developer of green data centers for cryptocurrency mining and other intensive computing, today announced two recent financing developments that serve to increase capital structure flexibility and fund the Company’s near-term growth pipeline. The developments, which involved several longstanding investors in the Company, are intended to enable the Company to continue to execute on its business plan notwithstanding the current market volatility including drawing down an initial tranche of the previously announced project financing from funds managed by Spring Lane Capital for Dorothy 1 in the coming weeks. Convertible Note Amendment The Company reached an agreement with the Noteholders to amend the terms on the remaining balance of approximately $13,000,000 of convertible notes issued in October of 2021. The notes will restrike the conversion price up to 3 times at a 20% discount to the 5-day VWAP. The notes currently have a fixed conversion price of $9.18. In partial consideration of the amendment to the notes, the Noteholders agreed to release certain collateral covered by their security agreement to permit the Company to proceed forward with the initial phase of the Dorothy project and release the Spring Lane project financing, which the Company intends on completing in the near future. Series B Preferred Issuance On 07/19/2022 The Company issued $5,000,000 Convertible Preferred Series B Stock (the “Preferred B”) with a 3 year term via a direct private placement to a current investor. The conversion price is a 20% premium to the close of the Company’s common stock on July 18, or $5.41 per share. The Preferred B includes a 10% dividend that may be paid in cash or stock annually or at conversion. The holder also retired warrants for 1,000,000 common shares with an exercise price at $11.50 and received new warrants for 1,000,000 common shares with an exercise price at $10.00. Commenting on the financing progress, CEO of Soluna Holdings Michael Toporek commented, “This is a critical development for our company and our stockholders. At a particularly challenging time in the capital markets, the new financing arrangements provide our company with a sig...