Monday, February 28, 2022 12:51:43 PM
February 28 2022 - 09:29AM
GlobeNewswire Inc.
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 a debt financing.
Michael Toporek, CEO of Soluna Holdings, stated, “This financing continues our commitment to fund our capital planand minimize dilution to our common equity holders."
On February 22, 2022, the Company issued to certain institutional lenders promissory notes in an aggregate principal amount of $7.5 million for an aggregate purchase price of $7.5 million. The Notes were issued as the first tranche of an aggregate financing of $20.0 million. The Company expects to issue to the Lenders a second tranche of promissory notes in an aggregate principal amount of $2.5 million for an aggregate purchase price of $2.5 million and a third tranche of promissory notes in an aggregate principal amount of $10.0 million for an aggregate purchase price of $10.0 million along with Class D common stock purchase warrants to purchase up to an aggregate of 500,000 shares of common stock of the Company at an exercise price of $11.50 per share. The Warrants will be immediately exercisable for two years upon issuance, subject to applicable Nasdaq Stock Market LLC rules. The Warrants will only be issued if and when the third tranche notes are issued.
SHI intends to use the net proceeds of the financing for the acquisition, development and growth of data centers, including cryptocurrency mining processors, other computer processing equipment, data storage, electrical infrastructure, software and real property, and business, and for working capital and general corporate purposes, which include, but are not limited to, operating expenses.
The First Tranche Notes have a maturity date of February 22, 2027 and the Second Tranche Notes and Third Tranche will have a maturity date five years from the date of issuance upon which dates the Notes shall be payable in full, and accrue interest at a rate of 2% per annum. The Notes may be repaid, at the Lender’s sole election, either at the applicable Maturity Date or upon the first business day of each month that the Company keeps open a private offering of its shares of the Company’s 9.0% Series A Cumulative Perpetual Preferred Stock, par value $0.001 per share (the “Series A Preferred Stock”) by presenting its Note in whole or in part as legal tender to purchase such shares of Series A Preferred Stock at a price per share of Series A Preferred Stock on the date immediately preceding the closing of such subscription, provided that if the Notes are not repaid by May 2, 2022, the Notes shall automatically be subscribed for shares of the Series A Preferred Stock. The Notes may be prepaid or redeemed upon written notice to the other party.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
Recent SLNH News
- Soluna Signs Term Sheet with Renewable Energy Leader for New Data Center Project • Business Wire • 09/16/2024 12:00:00 PM
- Soluna Announces Monthly Business Update • Business Wire • 09/11/2024 12:00:00 PM
- Soluna Secures New $25M Growth Capital Line • Business Wire • 09/09/2024 12:00:00 PM
- Soluna Breaks Ground on Project Dorothy 2, its Flagship Sustainable Data Center in Texas • Business Wire • 08/29/2024 12:00:00 PM
- Soluna to Participate in Water Tower Research Fireside Chat Series • Business Wire • 08/26/2024 12:00:00 PM
- Soluna Holdings Reports Strong Adjusted EBITDA and Q2’24 Results • Business Wire • 08/15/2024 12:00:00 PM
- Soluna Announces Monthly Business Update • Business Wire • 08/07/2024 12:00:00 PM
- Soluna Announces Sustainable AI Soluna Cloud Supported by Hewlett Packard Enterprise • Business Wire • 07/30/2024 12:00:00 PM
- Soluna Closes $30M Funding from Spring Lane Capital for Project Dorothy 2 • Business Wire • 07/24/2024 12:00:00 PM
- Soluna Cloud Expands Funding for AI Business to $13.75 Million • Business Wire • 07/17/2024 12:00:00 PM
- Soluna Announces Immediate Availability of Sustainable AI Cloud Services • Business Wire • 07/11/2024 12:00:00 PM
- Soluna Announces Monthly Business Update • Business Wire • 07/09/2024 12:00:00 PM
- Soluna Unleashes First Batch of NVIDIA GPUs, Targeting $80 Million Revenue Over Three Years • Business Wire • 06/24/2024 12:00:00 PM
- Soluna Announces Monthly Business Update • Business Wire • 06/05/2024 12:00:00 PM
- Soluna to Participate in Water Tower Research Fireside Chat Series • Business Wire • 06/04/2024 12:00:00 PM
- Soluna Holdings’ CEO John Belizaire Shares Roadmap to Profitability in Shareholder Letter • Business Wire • 05/23/2024 12:00:00 PM
- Soluna Signs Power Purchase Agreement with EDF Renewables for Texas Data Center Project • Business Wire • 05/22/2024 12:00:00 PM
- Soluna Secures $30M from Spring Lane Capital to Fuel Project Dorothy 2 • Business Wire • 05/21/2024 12:00:00 PM
- Soluna Holdings Reports Q1’24 Results • Business Wire • 05/16/2024 12:00:00 PM
- Soluna Launches New AI Cloud Service in Collaboration with Leading High Performance Computing Company • Business Wire • 05/08/2024 12:00:00 PM
- Soluna Announces Monthly Business Update • Business Wire • 05/06/2024 12:00:00 PM
- Soluna to Participate in Water Tower Research Fireside Chat Series • Business Wire • 04/22/2024 12:00:00 PM
- AI & Technology Hybrid Investor Conference Agenda: Presentations Now Available for Online Viewing • GlobeNewswire Inc. • 04/12/2024 02:07:03 PM
- AI & Technology Hybrid Investor Conference Presented by Water Tower Research Agenda Announced for April 10 and 11 • GlobeNewswire Inc. • 04/09/2024 02:26:42 PM
- Soluna Announces Monthly Business Update • Business Wire • 04/08/2024 12:00:00 PM
VHAI - Vocodia Partners with Leading Political Super PACs to Revolutionize Fundraising Efforts • VHAI • Sep 19, 2024 11:48 AM
Dear Cashmere Group Holding Co. AKA Swifty Global Signs Binding Letter of Intent to be Acquired by Signing Day Sports • DRCR • Sep 19, 2024 10:26 AM
HealthLynked Launches Virtual Urgent Care Through Partnership with Lyric Health. • HLYK • Sep 19, 2024 8:00 AM
Element79 Gold Corp. Appoints Kevin Arias as Advisor to the Board of Directors, Strengthening Strategic Leadership • ELMGF • Sep 18, 2024 10:29 AM
Mawson Finland Limited Further Expands the Known Mineralized Zones at Rajapalot: Palokas step-out drills 7 metres @ 9.1 g/t gold & 706 ppm cobalt • MFL • Sep 17, 2024 9:02 AM
PickleJar Announces Integration With OptCulture to Deliver Holistic Fan Experiences at Venue Point of Sale • PKLE • Sep 17, 2024 8:00 AM