ALBANY, NY – Soluna Holdings, Inc. (NASDAQ:SLNH), a finance services company specializing in crypto assets, has reported the outcomes of stockholder votes from a special meeting held on Monday. The voting addressed key issues including the amendment of the company's stock incentive plan and potential issuance of common stock exceeding Nasdaq's exchange cap.
The first proposal concerned the potential reservation and issuance of shares of Soluna Holdings' common stock under a Standby Equity Purchase Agreement with YA II PN, LTD., and an amendment to the Securities Purchase Agreement with the holder of the company's Series B Convertible Preferred Stock.
The issuance was proposed to potentially exceed 20% of the company's total outstanding shares, a threshold set by Nasdaq Stock Market Rules. Stockholders voted in favor with 3,359,403 votes for, 100,952 against, and 3,357 abstentions.
The second proposal, which also received stockholder approval, involved an amendment to the Soluna Holdings, Inc. Fourth Amended and Restated 2021 Stock Incentive Plan. The amendment changes the calculation of the number of shares available for awards under the plan. The votes tallied at 2,906,359 for, 552,672 against, and 4,681 abstentions.
These votes reflect stockholder approval for both the issuance of common stock that may exceed Nasdaq's exchange cap and the modification of the company's stock incentive plan. The details of the changes to the 2021 Plan were outlined in the company's proxy statement filed with the SEC on October 28, 2024.
Soluna Holdings, originally known as Mechanical Technology Inc., has been incorporated in Nevada and is headquartered in Albany, New York. The company's common stock and 9.0% Series A Cumulative Perpetual Preferred Stock are both traded on the Nasdaq Stock Market under the tickers SLNH and SLNHP, respectively.
The reported voting outcomes are based on the information provided in the company's SEC filing.
In other recent news, Soluna Holdings has made significant strides in its green data center projects. The company reported a substantial 362% increase in Q2 2024 revenue, and secured significant funding, including a $25 million Standby Equity Purchase Agreement with Yorkville Advisors Global L.P., and $30 million for the expansion of its flagship data center, Project Dorothy 2.
Soluna Holdings has also increased its credit facility to $13.75 million for its subsidiary, Soluna Cloud, and a $34 million cloud services agreement with Hewlett Packard Enterprises is expected to generate up to $80 million in revenue over the next three years.
Soluna Holdings announced Project Rosa, a green data center project offering up to 187 megawatts of capacity, powered by an adjacent 240 MW wind farm in Texas. The company has also decided not to proceed with prepaid equity advances under a previously executed Standby Equity Purchase Agreement with YA II PN, LTD, instead opting to adhere to the original terms.
These recent developments, advised by Northland Capital Markets, BitOoda Technologies, and Imperial Capital, are part of Soluna Holdings' ongoing efforts to expand its green data center and hosting services. The company's various projects, including Project Dorothy 2, Project Sophie, and Project Kati, are making significant progress. Soluna Holdings has also appointed John Tunison as its new Chief Financial Officer, marking another step in its ongoing expansion efforts.
InvestingPro Insights
Recent data from InvestingPro sheds additional light on Soluna Holdings' financial position and market performance. The company's market capitalization stands at $27.61 million, reflecting its current valuation in the market. Notably, Soluna has experienced significant revenue growth, with a 163.5% increase over the last twelve months as of Q3 2024, reaching $39.87 million. This growth aligns with the company's recent corporate actions, including the amendment to its stock incentive plan and the potential issuance of additional common stock.
However, InvestingPro Tips highlight some challenges facing the company. Soluna is currently not profitable over the last twelve months, and its short-term obligations exceed liquid assets. This financial situation may explain the company's recent moves to potentially issue more common stock, as discussed in the stockholder meeting.
Despite these challenges, the stock has seen a large price uptick over the last six months, with a 41.49% total return. This positive momentum could be influencing investor sentiment and the company's ability to gain stockholder approval for its recent proposals.
For investors seeking a more comprehensive analysis, InvestingPro offers 5 additional tips for Soluna Holdings, providing deeper insights into the company's financial health and market position.
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