Benzinga | Dec 17, 2021 09:03AM EST

Soluna Holdings Reports Letter Of Intent For Sale Of Its MTI Instruments Unit, No Terms Disclosed

Soluna Holdings, Inc. (NASDAQ:SLNH), a developer of green data centers for cryptocurrency mining and other intensive computing, today announced that it has entered into a non-binding letter of intent for the potential sale of its MTI Instruments subsidiary (the "LOI") with a strategic buyer in the test and measurement space.

Michael Toporek, CEO of Soluna Holdings, stated, "As we committed to shareholders, we would explore potential strategic transactions for our instruments business so that we could focus on being a pure play green computing, zero-carbon computing and cryptocurrency mining company. We have moved to the exclusive phase of a potential transaction."

Toporek added, "MTI is a great business with a bright future that we know will continue to thrive."

Moshe Binyamin, President and CEO of MTI Instruments, commented, "This is an exciting time in MTI's history and evolution. This strategic buyer is a great company with complementary products in large and growing markets and MTI's vision for accelerated growth and market focus are perfectly in-line with their strategy. We look forward to combining forces so we can further accelerate our collective growth objectives. I am extremely proud of the MTI team for building our top-tier technology and the overall business and am very much looking forward to realizing the incredible opportunity in front of us."

Per the LOI, the Buyer would acquire 100% of the common stock of MTI Instruments. Additionally, neither the Company nor MTI Instruments is permitted to, directly or indirectly, solicit, or pursue an unsolicited offer from any party other than the Buyer for the sale of MTI Instruments for a prespecified time. The LOI is non-binding except for terms relating to the Buyer's access to MTI Instruments' due diligence documentation, solicitation by the Company or MTI Instruments of other offers to buy MTI Instruments, expenses, non-disclosure and the Buyer's assignment rights. The LOI only represents a mutual indication of interest regarding the Sale and the terms of the Sale are subject to a number of contingencies, including the completion of customary due diligence and the negotiation and execution of definitive agreements. If the Sale is completed, the Company expects that it will exit the instrumentation business and will be focused on developing and monetizing green, zero carbon computing and cryptocurrency mining facilities.