Soluna Holdings, Inc. Announces Series B Convertible Preferred Stock

Soluna Holdings, Inc. Announces Series B Convertible Preferred Stock


ALBANY, NY – (NewMediaWire) – July 20, 2022 – 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 data-intensive, today announced two new financing developments designed to increase the flexibility of the capital structure and fund the company’s near-term growth pipeline. The developments, which have involved several long-time investors in the company, are expected to allow the company to continue executing on its business plan despite the current market volatility, including drawing a first tranche of previously announced project financing from funds managed by Spring Lane Capital for Dorothy 1 in the following weeks.

Amendment of the Convertible Bond

The Company has entered into an agreement with the bondholders to amend the terms of the remaining balance of approximately $13,000,000 of convertible bonds issued in October 2021. The Notes will re-raise the conversion price up to three times at a discount of 20% 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 have agreed to release certain securities covered by their Security Agreement to enable the Company to proceed with the initial phase of the Dorothy Project and release the Spring Lane Project financing, which the Company intends to complete in the near future.

B series deluxe edition

On 7/19/2022, the Company issued $5,000,000 of Series B convertible preferred stock (the “B Preferred Stock”) with a term of 3 years through a direct private placement to a current investor. The conversion price is a 20% premium to the closing price of the Company’s common stock on July 18, or $5.41 per share. The Preferred B includes a 10% dividend, which can be paid annually or upon conversion in cash or shares. The holder also retired warrants for 1,000,000 shares of common stock with an exercise…


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