Company: FWDI
Filing Date: 2025-06-10
Form Type: PRE 14A
Source: 0001683168-25-004370
Chunk: 52

Company: Forward Industries, Inc.
Filing Date: 2025-06-10
Form: PRE 14A
Chunk 52
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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 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