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Soluna Signs Agreement with Noteholders to Facilitate Early Payoff of Convertible Notes
Amendment is a first step towards potential new financing to simplify capital structure and provide less dilutive financing for growth strategy ALBANY,
About this update from Soluna Holdings, Inc.
[{"type":"text","content":"\nAmendment is a first step towards potential new financing to simplify capital structure and provide less dilutive financing for growth strategy\n\n\n ALBANY, N.Y.--(BUSINESS WIRE)--\nSoluna Holdings, Inc. (“SHI” or the “Company”), (NASDAQ: SLNH), the parent company of Soluna Computing, Inc. (“SCI”), a developer of green data centers for Bitcoin mining and other intensive computing applications, announced today it has come to an agreement with its noteholders to facilitate the repayment of the Notes ahead of the July 25, 2024 maturity date. The agreement with the noteholders is a vital first step as it seeks less-dilutive financing alternatives to build out Soluna’s robust project pipeline.\n\n\nJohn Belizaire, CEO of Soluna Holdings, commented, “I want to thank our noteholders for the support as we have executed our strategic plan this year. Our momentum in recent months has attracted the interest of new infrastructure investors who see the potential of our vision. Our data center design is repeatable and is a sustainable solution to the growing need for AI compute. This deal will allow Soluna flexibility to pursue fresh less-dilutive capital that will help us scale in a shareholder friendly way.”\n\n\nOn November 20, 2023 the Company and the noteholders entered into a Third Amendment Agreement to amend the Notes and related agreements to facilitate future financings by the Company that may include funds for prepayment of the Notes by permitting the Company to force conversion of up to $1,500,000 of the Notes under certain circumstances and reduce the prepayment penalty in return for reducing the conversion price of the $4,700,000 of the Notes to $3.78 and reducing the exercise price of 150,000 of the Warrants to $0.01.\n\n\nThe definitive documents are included in an 8-K to be filed.\n\n\nSafe Harbor Statement\n\n\nThis announcement contains forward-looking statements. These statements are made under the \"safe harbor\" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as \"will,\" \"expects,\" \"anticipates,\" \"future,\" \"intends,\" \"plans,\" \"believes,\" \"estimates,\" \"confident\" and similar statements. Soluna Holdings, Inc. may also make written or oral forward-looking statements in its periodic reports to the U.S. Securiti...