Company: FWDI
Filing Date: 2025-06-20
Form Type: DEF 14A
Source: 0001683168-25-004653
Chunk: 59

Company: Forward Industries, Inc.
Filing Date: 2025-06-20
Form: DEF 14A
Chunk 59
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: (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. The conversion price of the Series B and exercise price of the
Warrants are below the Minimum Price. The potential issuance of additional shares of common stock pursuant to the conversion of the Series
B and exercise of the Warrants will exceed the 20% threshold under the applicable Nasdaq listing rules. Accordingly, in order to ensure
compliance with Nasdaq Listing Rule 5635, the Company must obtain the approval of the Company’s shareholders for the issuance of
these shares pursuant to the conversion of the Series B and exercise of the Warrants in the event that the issuance of such shares of
common stock will exceed the 20% threshold under the applicable Nasdaq listing rules. In no event shall the Company issue any shares upon
the conversion of the Series B and exercise of the Warrants, if such issuance would cause the aggregate number of shares of common stock
issued pursuant to such conversions and/or exercises to exceed the Exchange Cap (such number of shares equal to 19.99% of the shares of
common stock issued and outstanding immediately preceding the execution of the Series B Purchase Agreements).

Series B Transaction

On May 23, 2025, the Company entered
into the Securities Purchase Agreements with the Series B Investors whereby the Series B Investors were issued an aggregate of 1,000,000
shares of Series B in aggregate consideration for $1,000,000. The Series B are convertible into shares of the Company’s common stock.
Additionally, the Series B Investors were issued an aggregate of 111,111 warrants exercisable at $6.50 per share. The Company intends
to use the proceeds from the issuance of the Series B for working capital and general corporate purposes. The Series B shares (i) accrue
dividends at 10% per annum, payable quarterly in arrears in cash, provided that the Company may elect to pay dividends in common stock
or by increasing the stated value if specified equity conditions are met as defined in the Series B Certificate of Designation filed with
the Secretary of State of New York on May 21, 2025 (the “Certificate of Designation”), (ii) are convertible into common stock
at $4.50 per share, subject to customary anti-dilution with a