Company: FWDI
Filing Date: 2025-05-22
Form Type: 8-K
Source: 0001683168-25-003941
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Company: Forward Industries, Inc.
Filing Date: 2025-05-22
Form: 8-K
Item: Item 1.01
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Item 1.01 Entry into a Material Definitive
Agreement.

Transaction Agreement

On May 16, 2025, Forward Industries, Inc. (the
“ Company”) and Forward Industries (IN), Inc., a wholly-owned subsidiary of the Company entered into a Transaction Agreement
(the “ Agreement”) with Forward Industries (Asia-Pacific) Corporation (“ FC”), a company owned by Terence Wise,
who at the time served as the Company’s Chairman of the Board of Directors (“ Board”) and Chief Executive Officer. Pursuant
to the Agreement, the Company sold its wholly-owned subsidiary, Forward Industries (Switzerland) GmbH and certain other assets related
to the Company’s discontinued Original Equipment Manufacturer business to FC to satisfy outstanding payables of $4,100,000 due to
FC under that certain Buying Agency and Supply Agreement between the Company and FC (the “ Agency Agreement”). Additionally,
as part of the Agreement, (i) the Company and FC terminated the Agency Agreement and (ii) the Company and FC extended the maturity date
of that certain Promissory Note dated January 18, 2018 (as amended) issued by the Company to FC to December 31, 2025. The Company paid
$200,000 to FC at closing and agreed to make additional cash payments of $150,000 on each of July 31, 2025, August 29, 2025 and September
30, 2025.

The Agreement was approved by a Special Committee
of the Board (“ Special Committee”), comprised of directors who were both independent and disinterested directors, established
to evaluate the transaction. To assist with the process, the Special Committee engaged legal counsel and CoView Capital, Inc. (“ CoView”),
as its exclusive financial adviser. In connection with the transaction, CoView approached numerous potential alternative acquirers who
declined to provide an offer for the business and delivered a written opinion to the Special Committee, dated May 16, 2025, to the effect
that, as of such date and based upon and subject to the various assumptions made, procedures followed, matters considered and limitations
on the methodologies employed in preparing the opinion, the consideration to be paid in the transaction was fair, from a financial point
of view, to the Company’s shareholders.

Equity Line of Credit Agreements

On May 16, 2025, the Company entered into a Securities
Purchase Agreement (the “ ELOC Agreement”) with C/M Capital Master Fund, LP (