Research from Water Tower Research, Water Tower Research

Water Tower Research

Water Tower Research is a leading equity research firm that provides research on micro, small and mid cap companies.

Water Tower Research was founded by Wall Street veterans after witnessing a fundamental shift in the investment research industry with the result being a declining knowledge base among investors, a lack of awareness and a shrinking pool of fundamental research being conducted on companies across the small-cap and micro-cap spectrum. The same issues are now increasingly occurring in the mid-cap space. This sea change within the investment community is impacting not only the companies themselves but also current shareholders and potential investors. With significantly less active sell-side sponsorship by Wall Street, a substantial information gap has developed between companies and various constituents in the financial community. The net result is fewer channels for insight and information to flow between companies and investors.

Research from Water Tower Research

Equity Research Firm

Equity Bottom-Up

<ul><li>Current market valuation only gives credit for existing projects, making the project pipeline a free option.</li><li>Earlier this year, Spring Lane Capital and Navitas Global bought their project stakes at an implied valuation of $566K and $941K per MW of capacity.</li><li>Using the average price paid gives a $31.3 million value for Soluna’s 100% share of Project Sophie and a 15% and 51% share of Project Dorothy 1A and 1B, about equal to the current $31.9 million enterprise value (Source: YCharts).</li></ul>

Current market valuation only gives credit for existing projects, making the project pipeline a free option.Earlier this year, Spring Lane Capital and Navitas Global bought their project stakes at an implied valuation of $566K and $941K per MW of capacity.Using the average price paid gives a $31.3 million value for Soluna’s 100% share of Project Sophie and a 15% and 51% share of Project Dorothy 1A and 1B, about equal to the current $31.9 million enterprise value (Source: YCharts).

Recent Outside Investments in Existing Projects Imply SLNH's Valuation Well Above Current Levels

Soluna Holdings

Recent Outside Investments in Existing Projects Imply SLNH's Valuation Well Above Current Levels