Forward Industries announced a $4 billion fundraising plan, and FORD's stock price plunged 10%.

Forward Industries, backed by Galaxy Digital, Jump Crypto, and Multicoin Capital with cash and stablecoin, has submitted a registration statement to the SEC, including a prospectus for an issuance at market price, expecting to raise up to $4 billion through the issuance of common stock. Amid concerns that equity may be significantly diluted, FORD stock fell 10% yesterday, closing at $33.51.

Forward Industries submits a $4 billion new stock issuance plan

Forward Industries submitted a market at-the-market offering prospectus ( to the SEC, allowing the company to gradually issue up to $4 billion of common stock through a sales agreement signed with Cantor Fitzgerald & Co.

If the sales agreement is terminated or suspended, the unsold shares can still be issued through the base prospectus and the supplementary prospectus. The base prospectus covers various types of securities that the company may issue in the future, including common stock, preferred stock, depositary shares, warrants, options, purchase contracts, or any combination of the above. A supplementary prospectus will be attached detailing the specific terms of each issuance.

Forward Industries intends to use the net proceeds from the fundraising for general corporate purposes, including but not limited to working capital, pursuing Solana strategies, acquiring income-generating assets, and other capital expenditures.

Forward Industries holds 6.82 million SOL, making it the largest Solana reserve strategy company in the world.

Forward Industries is utilizing the $1.65 billion PIPE financing obtained previously to initiate its corporate Solana financial plan. This financing was led by Galaxy Digital, Jump Crypto, and Multicoin Capital, and involved a combination of public market purchases and on-chain transactions to acquire non-locked SOL. To increase returns, all Solana tokens acquired so far have also been staked.

Forward Industries previously purchased 6.822 million SOL at an average price of 232 USD, spending approximately 1.58 billion USD. It has transformed into the world's largest Solana reserve strategy company.

Kyle Samani, the chairman of Forward Industries, stated that the company's goal “is not only to become a top Solana digital asset company but also to become a top global digital asset company, with plans to become a publicly traded permanent capital vehicle worth over $50 billion within 5-10 years.”

Significant dilution of equity? FORD stock price falls by 10%

Forward Industries, after announcing its transformation into a SOL reserve company, saw its stock price jump from $13.49, reaching a high of $46, with a maximum increase of 241%. However, yesterday, amid concerns over potential significant dilution of equity, it plunged to $30 at one point, closing down 10% at $33.51.

This article announces Forward Industries' $4 billion fundraising plan, with FORD stock price plunging 10%, first appearing in Chain News ABMedia.