Forward Industries Announces Strategic Share Repurchase

Core Viewpoint - Forward Industries, Inc. has announced a share repurchase agreement that will enhance its SOL-per-share value and return over 6 million shares to its treasury, financed through a low-cost loan from Galaxy Digital LLC [1][3][4]. Group 1: Share Repurchase and Financial Impact - The company will repurchase 6,164,324 shares for a total cost of $27.4 million, reducing the outstanding shares from 83,142,133 to 76,977,809 [1][2]. - Following the transaction, the company's SOL holdings will increase from 6,962,501 to 7,013,536, resulting in an increase in SOL-per-share from approximately 0.0624 to 0.0662, reflecting an annualized increase of about 29% [2][4]. Group 2: Financing and Cost Optimization - To finance the share repurchase, Forward has secured a $40 million loan from Galaxy Digital LLC at an average interest rate of approximately 3.4% APR, with a maturity of about 4.9 months [3]. - The loan is secured by fwdSOL held in the company's treasury, allowing Forward to continue earning staking rewards while accessing low-cost capital [3][4]. - The company anticipates a significant reduction in SG&A expenses, projecting a decrease from $6.5 million in fiscal Q1 to approximately $3.6 million by fiscal Q3, representing a 45% reduction [4][5]. Group 3: Strategic Vision and Commitment - The share repurchase is viewed as an efficient use of capital that enhances shareholder value by reducing share count and increasing SOL-per-share [4]. - The company is focused on operational initiatives aimed at improving cost structure and operating leverage, which are expected to compound value for shareholders over time [5][6].