Company: FWDI
Filing Date: 2025-06-20
Form Type: DEF 14A
Source: 0001683168-25-004653
Chunk: 53

Company: Forward Industries, Inc.
Filing Date: 2025-06-20
Form: DEF 14A
Chunk 53
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 20% of the outstanding common stock prior to the date of the ELOC Agreement at an average price less than $7.10 until shareholder approval
allowing the issuance of the underlying shares of common stock is obtained.

Equity Line of Credit Transaction

Pursuant to the ELOC Agreement,
the Company, subject to the restrictions and satisfaction of the conditions in the ELOC Agreement, has the right, but not the obligation,
to sell to the Purchaser, and the Purchaser is obligated to purchase, up to the lesser of (i) $35 million of newly issued shares (the
“Purchase Shares”) of the Company’s common stock, $0.01 par value per share (the “Purchase Shares”) and
(ii) the Exchange Cap (as defined below). As consideration for the Purchaser’s execution and delivery of the ELOC Agreement, the
Company agreed to issue to the Purchaser, simultaneously with the delivery of any and all Purchase Shares purchased under the ELOC Agreement,
a number of shares of common stock equal to 1% of the Available Amount. (the “Commitment Shares” and, together with the Purchase
Shares, the “Securities”).

Concurrent with the execution
of the ELOC Agreement, the Company entered into a registration rights agreement with the Purchaser (the “Registration Rights Agreement”).
Pursuant to the Registration Rights Agreement, the Company agreed to file a registration statement on Form S-1 with the SEC covering the
resale of the Securities, on or before the 30th calendar day following the date of the Registration Rights Agreement and to use its commercially
reasonable efforts to cause such registration statement to be declared effective by the SEC at the earliest practicable date, subject
to limited exceptions described therein. The registration rights granted under the Registration Rights Agreement are subject to certain
conditions and limitations and are subject to customary indemnification and contribution provisions.

The Company did not have
a right to commence any sales of common stock to the Purchaser under the ELOC Agreement until the time when all of the conditions to
the Company’s right to commence sales of common stock to the Purchaser set forth in the ELOC Agreement had been satisfied, including
that a registration statement covering the resale of the Securities is declared effective by the Securities and Exchange Commission (the
“SEC”) and the final form of prospectus contained therein is filed with the SEC (the “Commencement Date”). The
Company filed a Registration Statement on Form S-1 covering the resale of