---
schema_version: "secwatch.filing_event.v1"
accession: "0001213900-25-117578"
form_type: "8-K"
ticker: "FRMM"
cik: "0001690080"
company_name: "FORUM MARKETS Inc"
filed_at: "2025-12-03T23:59:59+00:00"
generated_at: "2026-05-16T15:15:51.772928+00:00"
event_type: "m_and_a"
sentiment: "positive"
materiality_score: 0.75
calibrated_materiality_score: 0.75
confidence: "high"
source: SEC EDGAR
---

# ETHZilla acquires 20% stake in Karus for $10M; plans AI-driven auto loan tokenization

## Summary
- Consideration: $3M cash + $7M in ETHZ common stock (453,721 + 181,488 shares) for 20% fully-diluted interest in Karus.
- Karus AI platform trained on 20M+ auto loan outcomes; already processed $5B in loan volume.
- First tokenized auto loan portfolios expected to launch in early 2026 via Liquidity.io.
- For every $100M deployed in Karus token, ETHZilla expects $9-12M adjusted EBITDA.
- ETHZilla to appoint a director to Karus board; shares subject to 3-6 month lock-ups.

## SEC filing metadata
- accession: 0001213900-25-117578
- form_type: 8-K
- ticker: FRMM
- cik: 0001690080
- company_name: FORUM MARKETS Inc
- filed_at: 2025-12-03T23:59:59+00:00
- event_type: m_and_a
- sentiment: positive
- materiality_score: 0.75
- calibrated_materiality_score: 0.75
- confidence: high
- sec_items: 1.01, 2.01, 3.02, 7.01, 9.01
- EDGAR index: https://www.sec.gov/Archives/edgar/data/1690080/000121390025117578/0001213900-25-117578-index.htm
- EDGAR primary document: https://www.sec.gov/Archives/edgar/data/1690080/000121390025117578/ea0268168-8k_ethzilla.htm

## Machine-readable alternates
- HTML: https://secwatch.observer/filing/0001213900-25-117578
- JSON: https://secwatch.observer/filing/0001213900-25-117578.json
- Plain text: https://secwatch.observer/filing/0001213900-25-117578.txt

## Key facts
- Material Agreements
  FORUM MARKETS Inc entered into Karus Stock Purchase Agreements with certain stockholders of Karus valued at 181,488 shares of common stock valued at $2 million for 310,945 shares of Karus common stock and 44, (effective 2025-12-02).
  - Action: entry
  - Agreement: equity purchase
  - Counterparty: certain stockholders of Karus
  - Value: 181,488 shares of common stock valued at $2 million for 310,945 shares of Karus common stock and 44,
  - Effective: 2025-12-02
  source text: On December 2, 2025, ETHZilla Corporation (the “ Company ”, “ we ” and “ us ”), entered into (i) a Purchase and Subscription Agreement (the “ Karus Purchase Agreement ”) with Karus Inc., a Delaware corporation (“ Karus ”), (ii) separate Stock Purchase Agreements (the “ Karus Stock Purchase Agreements ”) with certain stockholders of Karus (the “ Karus Stockholders ”); and (iii) a Series A Preferred Stock Rights Agreement with Karus and certain significant stockholders of Karus (the “ Key Holders ”, and the “ Karus Rights Agreement ”).
  evidence_url: https://www.sec.gov/Archives/edgar/data/1690080/000121390025117578/0001213900-25-117578-index.htm
- Material Agreements
  FORUM MARKETS Inc entered into Karus Purchase Agreement with Karus Inc. valued at $3 million cash and 453,721 shares of common stock valued at $5 million for 1,421,464 shares of Karu (effective 2025-12-02).
  - Action: entry
  - Agreement: equity purchase
  - Counterparty: Karus Inc.
  - Value: $3 million cash and 453,721 shares of common stock valued at $5 million for 1,421,464 shares of Karu
  - Effective: 2025-12-02
  source text: On December 2, 2025, ETHZilla Corporation (the “ Company ”, “ we ” and “ us ”), entered into (i) a Purchase and Subscription Agreement (the “ Karus Purchase Agreement ”) with Karus Inc., a Delaware corporation (“ Karus ”), (ii) separate Stock Purchase Agreements (the “ Karus Stock Purchase Agreements ”) with certain stockholders of Karus (the “ Karus Stockholders ”); and (iii) a Series A Preferred Stock Rights Agreement with Karus and certain significant stockholders of Karus (the “ Key Holders ”, and the “ Karus Rights Agreement ”).
  evidence_url: https://www.sec.gov/Archives/edgar/data/1690080/000121390025117578/0001213900-25-117578-index.htm
- Material Agreements
  FORUM MARKETS Inc entered into Karus Series A Preferred Stock Rights Agreement with Karus and certain significant stockholders of Karus valued at Sets forth rights of Karus Series A Preferred Stock including liquidation preference, conversion rig (effective 2025-12-02).
  - Action: entry
  - Agreement: equity purchase
  - Counterparty: Karus and certain significant stockholders of Karus
  - Value: Sets forth rights of Karus Series A Preferred Stock including liquidation preference, conversion rig
  - Effective: 2025-12-02
  source text: On December 2, 2025, ETHZilla Corporation (the “ Company ”, “ we ” and “ us ”), entered into (i) a Purchase and Subscription Agreement (the “ Karus Purchase Agreement ”) with Karus Inc., a Delaware corporation (“ Karus ”), (ii) separate Stock Purchase Agreements (the “ Karus Stock Purchase Agreements ”) with certain stockholders of Karus (the “ Karus Stockholders ”); and (iii) a Series A Preferred Stock Rights Agreement with Karus and certain significant stockholders of Karus (the “ Key Holders ”, and the “ Karus Rights Agreement ”).
  evidence_url: https://www.sec.gov/Archives/edgar/data/1690080/000121390025117578/0001213900-25-117578-index.htm

This AI-assisted summary is a reading aid. Review the linked SEC EDGAR filing before relying on any specific claim.