Forward Industries Executes Share Buyback with Crypto-Backed Loan
- Forward Industries purchased over six million shares for $27.4 million from an institutional investor.
- The buyback was funded by a $40 million crypto-backed loan from Galaxy Digital, secured by staked Solana.
- Shares of Forward Industries (FWDI) ended the day down by 0.7% and are over 89% below last year’s peak.
- The transaction reduces the firm’s common shares outstanding by approximately 7.4%.
- Forward holds more than seven million Solana, currently valued at $614 million, despite significant unrealized losses.
Forward Industries has utilized a crypto-backed loan to finance a share buyback, aiming to enhance SOL-per-share accretion for its shareholders amidst significant market value decline of its stock and Solana holdings.
This strategic move reflects the firm’s focus on optimizing shareholder value through share repurchases rather than acquiring more cryptocurrency in the open market due to current trading conditions. (Source)
