Company: FWDI
Filing Date: 2025-06-20
Form Type: DEF 14A
Source: 0001683168-25-004653
Chunk: 52

Company: Forward Industries, Inc.
Filing Date: 2025-06-20
Form: DEF 14A
Chunk 52
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.S. holder will include the period during which such U.S. holder held the Forward New York common
stock surrendered in exchange therefor.

Recommendation of the Board

The Board recommends a vote
“FOR” the Nevada Reincorporation.

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<div align='center'>PROPOSAL 4: NASDAQ 20% ISSUANCE PROPOSAL ELOC</div>

Overview

On May 16, 2025, the Company entered
into a securities purchase agreement (the “ELOC Agreement”) with C/M Capital Master Fund, LP (the “Purchaser”),
establishing an equity line of credit pursuant to which the Company may sell shares of common stock to the Purchaser from time to time
in its discretion. Pursuant to the ELOC Agreement, the Company agreed to sell, and the Purchaser agreed to purchase, up to $35 million
(the “Available Amount”) of the Company’s common stock, subject to a sale limit of 19.99% of the outstanding shares
of the Company’s common stock.

The Company’s common
stock is listed on The Nasdaq Capital Market (“Nasdaq”), and, as such, is subject to the applicable rules of Nasdaq, including
Nasdaq Listing Rule 5635. Pursuant to the ELOC Agreement, the Company immediately issued 24,929 shares of common stock to the Purchaser.
The potential issuance of additional shares of common stock pursuant to the ELOC Agreement may exceed the 20% threshold under the applicable
Nasdaq Listing Rules. Nasdaq Listing Rule 5635 requires shareholder approval prior to certain issuances with respect to common stock (or
securities convertible into or exercisable for common stock), other than in a public offering, of greater than or equal to 20% of the
outstanding common stock or voting power of the issuer prior to the offering if the price is below the “Minimum Price” (as
determined in accordance with Nasdaq rules). Under Rule 5635, the “Minimum Price” means a price that is the lower of: (i)
the closing price of our common stock immediately preceding the signing of the binding agreement; or (ii) the average closing price
of our common stock for the five trading days immediately preceding the signing of the binding agreement. In order for the purchase price
in the private placement to comply with the Minimum Price requirement under Nasdaq Listing Rule 5635, we may not issue shares in excess
of