Share Repurchase Program and Resale Prospectus
Forward Industries' Board of Directors authorized a $1 billion share repurchase program on November 3rd, allowing the company to buy back its outstanding common stock through September 30, 2027. The authorization coincided with the Solana treasury company filing a resale prospectus supplement with the SEC.
The resale prospectus supplement registers certain shares of common stock and shares issuable upon exercise of warrants previously issued in the company's September 2025 private placement. This filing permits selling stockholders to resell such securities from time to time, with Forward Industries not receiving any proceeds from potential resales.
Repurchases may be executed through various methods, including open-market purchases, block trades, and privately negotiated transactions, such as accelerated share repurchases. The program may incorporate Rule 10b-111 trading plans, and any repurchase will be conducted in compliance with Rule 10b-18 of the Securities Exchange Act of 1934.
The company retains the discretion to determine the timing, amount, and method of repurchases. These decisions will be influenced by factors such as market conditions, share price, legal and regulatory requirements, and other considerations. The program does not commit Forward Industries to a specific number of repurchases and can be modified, suspended, or terminated at any time.
Company Strategy and Solana Holdings
Chairman Kyle Samani described the resale registration as a standard post-PIPE process. He emphasized that launching a buyback program concurrently with this filing sends a strong message about the company's commitment to building long-term shareholder value. Samani also expressed confidence in the potential of $SOL technology for capital market applications.
Forward Industries currently holds over 6.8 million $SOL in its treasury, a stake valued at approximately $1.1 billion at current market prices. The company stands as the largest corporate holder of Solana and has also established a validator node on the Solana network.
This authorization provides Forward Industries with the flexibility to return capital to shareholders when its stock trades below its intrinsic value. This strategy can be pursued while the company continues to advance its Solana treasury and operational initiatives. Notably, the company's stock experienced a decline of nearly 20% on Tuesday, influenced by broader market weakness in the cryptocurrency sector.
Industry Context and Valuation Challenges
Analysts at Standard Chartered have raised concerns that numerous crypto treasury companies are facing a valuation crunch. Their enterprise values have diminished in relation to the market value of their underlying crypto holdings, resulting in a reduction of their market net asset value.
In June, venture capital firm Breed cautioned that only a limited number of Bitcoin treasury companies are likely to escape a "death spiral" triggered by collapsing net asset values. This pressure is not confined to altcoin-focused digital asset strategies, as it impacts blockchain companies across the entire sector.