Forward Industries, Inc. (NASDAQ: FWDI) has issued an open letter to shareholders of SkyAI, urging them to vote against the company's 2026 Equity Incentive Plan and to withhold votes on each of its five director nominees at the upcoming annual meeting scheduled for September 18, 2026. The letter highlights several concerns, including SkyAI's rejection of Forward's all-stock acquisition proposal, which was valued at $1.55 per share and represented a 20% premium to SkyAI's prior closing price.
Forward Industries, which positions itself as a Solana-focused digital asset treasury company, has expressed concerns about SkyAI's governance and financial practices. Specifically, the letter points to related-party arrangements disclosed in SkyAI's proxy statement. According to Forward, SkyAI paid $3.3 million in consulting fees to Sol Edge Limited in 2025 and issued warrants valued at approximately $101.3 million to Sol Markets. Forward asserts that these entities are owned and controlled by the brother of SkyAI's Chief Investment Officer and director, Yuwen (Alice) Zhang.
The proposed equity incentive plan, if approved, would authorize 5,145,000 additional shares for equity awards, resulting in approximately 7.2% additional dilution for existing shareholders. Forward is asking shareholders to vote against the plan, noting that it can be defeated by a majority of votes cast against it. However, due to SkyAI's uncontested plurality voting structure, individual director nominees cannot be defeated solely through withhold votes, which is why Forward is urging shareholders to withhold votes on all five nominees as a statement of dissatisfaction.
Forward Industries remains confident in the strategic rationale for a combination with SkyAI and has indicated its willingness to engage in discussions regarding a potential strategic transaction. The company's letter underscores its commitment to protecting shareholder value and promoting sound corporate governance.
Forward Industries, Inc. is a digital asset treasury company focused on Solana, with a strategy to buy, hold, stake, trade, invest in, and grow SOL and SOL-related digital assets, protocols, and businesses. The company launched its digital asset treasury strategy in September 2025, supported by investors and operating partners including Galaxy Digital and Jump Crypto. For more information on Forward's Solana treasury strategy, visit www.forwardindustries.com.
The full press release can be viewed at https://nnw.fm/1Yn1Q. For the latest news and updates on Forward Industries, visit the company's newsroom at https://nnw.fm/FWDI.
