Forward Industries’ preliminary figures for November 9 show that its Nasdaq-listed shares trade at a 29.7% discount to net asset value based on common shares alone, versus 2.4% when all potential shares are included. The gap is partly due to 13.38 million advisor and lead-investor warrants with a one-cent exercise price that can be exercised on a cashless basis. The $600.2 million net asset value includes $755.9 million in SOL and equivalents, $26.6 million in other digital assets and $5.25 million in cash and marketable securities, less $187.5 million in institutional debt. Common shareholders nevertheless have no contractual right to redeem their shares for SOL, and a decline in pledged SOL could increase collateral or repayment requirements. A November amendment also expanded Forward’s equity sales program to $4 billion by adding Barclays, while only 529,257 shares had been sold for about $12.1 million in gross proceeds through November 6.
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