Forward Industries, Inc. (NASDAQ: FWDI) has issued an open letter to shareholders of SkyAI, urging them to vote against the company's proposed 2026 Equity Incentive Plan and to withhold votes on all five director nominees at the upcoming annual meeting scheduled for September 18, 2026. The letter, released today, highlights several concerns about SkyAI's governance and financial practices, and underscores Forward's belief that a combination of the two companies would create significant value.
Central to Forward's objections is SkyAI's rejection of an all-stock acquisition proposal submitted on June 15, which valued SkyAI at $1.55 per share—a 20% premium over its prior closing price. Forward argues that this rejection demonstrates a lack of commitment to maximizing shareholder value. Furthermore, Forward points to disclosures in SkyAI's proxy statement revealing $3.3 million in consulting fees paid to Sol Edge Limited in 2025, as well as warrants valued at approximately $101.3 million issued to Sol Markets. According to Forward, these entities are owned and controlled by the brother of SkyAI's Chief Investment Officer and director, Yuwen (Alice) Zhang, raising serious questions about related-party arrangements and potential conflicts of interest.
Forward is specifically requesting that shareholders vote against the equity incentive plan, which would authorize the issuance of 5,145,000 additional shares for equity awards, representing roughly 7.2% dilution of existing shareholders. The plan can be defeated by a majority of votes cast against it. Additionally, Forward is urging shareholders to withhold votes from all five director nominees, although it acknowledges that due to SkyAI's plurality voting structure, individual nominees cannot be unseated solely through withhold votes. Nevertheless, Forward believes a strong message of dissatisfaction is necessary.
The open letter also reiterates Forward's confidence in the strategic rationale for a merger with SkyAI and expresses a willingness to engage in discussions regarding a potential strategic transaction. Forward's proactive stance reflects its broader mission as a Solana-focused digital asset treasury company, which includes buying, holding, staking, and investing in SOL and related digital assets to grow shareholder value. The company's strategy is supported by prominent partners such as Galaxy Digital and Jump Crypto.
For more information on Forward Industries and its initiatives, interested parties can visit the company's website at Forward Industries. The full text of the open letter is available at this link.
