On the potential delisting of ordinary shares of Forward Industries, Inc. (FORD)

The International Trading System Limited (ITS) informs of the potential delisting of ordinary shares of Forward Industries, Inc. (ISIN US3498624093, QI) from The Nasdaq Stock Market LLC (Nasdaq).

Information regarding the QI's status on Nasdaq

On February 27, 2025 Forward Industries, Inc. (the Company) submitted a Current report on Form 8-K to The United States Securities and Exchange Commission (SEC). According to the report, Nasdaq has determined to delist the Company’s securities due to the Company’s failure to comply with Nasdaq Listing Rule 5550(b)(1), which requires a minimum of $2.5 million stockholders’ equity for continued listing.

The Company was notified that trading in the Company’s common stock on Nasdaq will be suspended at the opening of business on March 4, 2025, and a Form 25-NSE will be filed with the SEC, removing the Company’s securities from listing on Nasdaq.

The Company intends to appeal Nasdaq’s determination and has requested a hearing before the Nasdaq Hearings Panel (the Panel). The hearing request will stay the suspension of trading pending the Panel’s decision. The Company intends to present a detailed plan to the Panel demonstrating how it will regain compliance with the minimum stockholders’ equity requirement of $2.5 million, though there can be no assurance that the Panel will grant the Company's request for continued listing.

Company’s financial position risk

In a quarterly report for the period ended December 31, 2024 the Company’s management expressed a substantial doubt about its ability to continue as a going concern for a period of at least 12 months. Previously, similar statements were made in the Company’s Annual report on Form 10-K.

Information regarding the actions taken by ITS

ITS will publish separate notices on the procedures undertaken by ITS outlining how trading in these qualified investments will be carried out.

In view of the potential trading suspension on Nasdaq, ITS intends to limit short selling and to shift the opening of trading in respect of the Company’s ordinary shares in the Main Trading Mode to 19:30 Astana time on every trading day starting from March 03, 2025.

If Nasdaq suspends trading in the Company’s ordinary shares, ITS will prohibit submission of orders and will restrict ability to conclude agreements in respect of the Company’s ordinary shares. If the Company’s ordinary shares are delisted from Nasdaq, ITS will terminate trading in the Company’s ordinary shares. However, in case the Company’s ordinary shares become listed, or admitted to trading on another Recognised Trading Venue, ITS will consider but does not guarantee continuation of trading in the Company’s ordinary shares.