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Soluna Holdings, Inc. Extends Maturity Date of October Notes to April 2023
ALBANY, NY, Sept. 13, 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, Sept. 13, 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 that it has entered into a further amendment to its convertible notes (the “Notes”) which were issued on October 25, 2021. The Company has agreed with the noteholders to amend the terms of the Notes and to extend the Notes’ maturity date until April 25, 2023. The amendment also allows for the Company to have released to it the $1,000,000 currently on deposit, though by October 17, 2022, the Company is required to re-escrow this amount. The Company will also not be required to make the next $950,000 escrow deposit that would have been due on September 28, 2022 or redeem up to $2,200,000 of Notes on September 29, 2022. In exchange for the extension of the maturity date of the Notes, the Company also agreed to increase the original issue discount (“OID”) of the Notes by 4%, which increases the balance due from $12,485,781 to $13,006,022. The Company also issued to the noteholders (1) 430,564 shares of the Company’s common stock in exchange for their existing Class B warrants to purchase up to 592,025 shares of common stock and (2) four new classes of warrants, each to purchase up to 1,000,000 shares of common stock, at exercise prices $3.50, $4.50, $5.50, and $7.50, respectively. In addition, the amended also extended the next conversion price reset of the Notes from October 5, 2022, to October 10, 2022. At any time until October 17, 2022, the noteholders have the option to convert up to $1,000,000 of the Notes to shares of the Company’s common stock at a conversion price of $2.2186, which reflects a twenty percent (20%) discount to the five-day volume weighted average price (VWAP) as of the close of trading on September 12, 2022. None of the other material terms of the Notes, as previously amended, have been further amended. Commenting on the amendment, Michael Toporek, CEO of Soluna Holdings, Inc., said, “We are pleased to be able to work with our noteholders to extend the maturity date of the outstanding Notes. We believe this transaction provides greater financial flexibility for the Company in the short term as we build towards energizing Pr...