Company: FWDI
Filing Date: 2025-06-10
Form Type: PRE 14A
Source: 0001683168-25-004370
Chunk: 59

Company: Forward Industries, Inc.
Filing Date: 2025-06-10
Form: PRE 14A
Chunk 59
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 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 floor conversion price of $1.00 and other adjustments as set forth in the
Certificate of Designation, (iii) are mandatorily convertible if certain conditions are met, including, but not limited to, when the closing
price of the common stock exceeds 200% of the conversion price for five consecutive trading days, (iv) have liquidation rights equal to
the greater of: (X) 125% of the conversion amount and (Y) the amount the holder would have received if the holder converted the shares
into common stock immediately prior to liquidation, (v