CEO entity converts $2.5M payables to preferred to aid Nasdaq compliance; OEM business at risk

Forward Industries, Inc.

FC, owned by CEO Terence Wise, converted $2.5M accounts payable into 2,500 shares of Series A-1 Convertible Preferred Stock at $1,000/share.
Conversion intended to strengthen shareholders' equity to help meet Nasdaq continued listing requirements; no assurance of adequacy.
FC will not renew the Buying Agency and Supply Agreement; company may discontinue OEM distribution business if no extension.
Company and FC agreed to preliminary terms for FC to purchase OEM business assets or securities; no definitive agreement yet.
Issuance exempt from registration under Section 4(a)(2) and Rule 506(b); FC is an accredited investor.

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