Treasury Firm Launches Share Buyback Plan

SkyAI, a Nasdaq-listed company focused on Solana treasury management, announced plans to launch a cash tender offer targeting up to 95% of its outstanding common stock and related pre-funded warrants. The offer, valued at approximately $201 million, is scheduled to begin around October 15 and remain open for 10 business days, with the potential to close earlier or be extended.

The company will fund the purchases using existing cash on hand and proceeds from the sale of its Solana holdings. It recently disposed of about 1 million SOL tokens, representing roughly half of its prior treasury, and holds approximately 1 million SOL as of October 11. SkyAI noted it may conduct additional sales depending on market conditions.

The tender offer covers up to 46.37 million common shares and 20.72 million warrants. It requires a minimum of 50% of each security class to be validly tendered or withdrawn, and Solana’s closing price must remain above $100 throughout the offer period. SkyAI plans to file final materials with the Securities and Exchange Commission by the start date.

Board Rejects Acquisition Proposal

SkyAI’s board of directors unanimously rejected a nonbinding all-stock proposal from Forward Industries. The alternative offer would have exchanged 0.306 shares of Forward Industries for each SkyAI share. Based on Forward Industries’ closing price on September 14, the proposed consideration was valued at $2.13 per SkyAI share, which represented a 50% premium to SkyAI’s closing price that day.

The board determined that the exchange undervalued SkyAI and was not in the best interests of its shareholders. SkyAI’s board also rejected the proposal to avoid undervaluing the company.

Competing Paths for Shareholders

The cash tender offer and the rejected stock proposal present competing options for SkyAI shareholders. With the tender process expected to begin around October 15, shareholders will have a clear mechanism to monetize their holdings at a fixed price while the company positions itself to strengthen its balance sheet through SOL sales and a share repurchase.

Strategic Context and Shareholder Options

SkyAI’s treasury strategy centers on holding and potentially selling SOL tokens to support corporate activities. The company’s recent sale of approximately half its holdings has provided liquidity that will now fund the tender offer, allowing it to return capital to shareholders directly through cash rather than an all-stock transaction. This approach contrasts with Forward Industries’ stock-based proposal and underscores SkyAI’s preference for maintaining control over its capital structure and valuation.

Both the tender offer and the rejected bid represent distinct paths forward. The cash mechanism offers certainty on pricing and timing, while the all-stock proposal would have diluted SkyAI’s ownership in another entity. With the tender offer set to commence soon, shareholders now have an immediate option to sell at $3 per share and warrant, subject to the conditions outlined. The company has not yet completed any tendering, but the planned launch on October 15 marks the next step in this competitive process.