Forward Industries, Inc. (NASDAQ:FORD), a New York-based company specializing in plastics products, has announced that it has regained compliance with Nasdaq's listing requirements. The company had previously faced non-compliance issues regarding the minimum bid price and stockholders' equity.
On July 24, 2024, Forward Industries received a Compliance Notice from Nasdaq confirming that it now meets the Minimum Bid Price Rule, which necessitates a minimum bid price of $1.00 for listed companies. Additionally, the company has also satisfied the Stockholders’ Equity Rule, which requires maintaining a minimum stockholders' equity of $2,500,000.
The company had reported non-compliance with these rules in filings with the Securities and Exchange Commission (SEC) on August 4, 2023, and February 5, 2024, for the Minimum Bid Price Rule, and on February 27, 2024, for the Stockholders’ Equity Rule.
Following the resolution of these issues, Nasdaq has placed Forward Industries under a mandatory panel monitor until July 24, 2025, as per Nasdaq Listing Rule 5815(d)(4)(B). This is a standard procedure intended to ensure the company maintains compliance with the market's regulations.
Kathleen Weisberg, the Chief Financial Officer of Forward Industries, signed off on the 8-K filing dated August 1, 2024, making the announcement official. The company’s business address is 700 Veterans Memorial Hwy, Suite 100, Hauppauge, New York, 11788.
In other recent news, Forward Industries has made strategic moves to regain compliance with NASDAQ's listing requirements. The company converted a significant portion of its debt into Series A-1 Convertible Preferred Stock, totaling $1.7 million. This conversion, approved by the company's Board of Directors, involved 1,700 shares of the newly designated stock, each valued at $1,000. This corporate restructuring was a response to NASDAQ's notification that Forward Industries was not meeting the Stockholders’ Equity Rule.
Simultaneously, the company executed a 1-for-10 reverse stock split of its common stock, consolidating ten existing common stock shares into one. This move was aimed at meeting NASDAQ's minimum bid price requirement for continued listing. Equity awards, warrants, and convertible notes also underwent proportional adjustments according to existing agreements.
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