Forward Industries urges SkyAI shareholders to reject the current board’s proposals amidst an escalating board challenge from the would-be acquirer. (NASDAQ: SKYA), a Solana treasury firm, faces an escalating board challenge from would-be acquirer Forward Industries, Inc. (NASDAQ: FWDI) and activist shareholder group Bastion Trading. Forward Industries urges SkyAI shareholders to reject the current board’s proposals.
This high-stakes confrontation, intensified by an open letter from Forward Industries on 2026-09-09, urges SkyAI shareholders to reject its entire slate of directors and a controversial equity plan ahead of the company’s annual meeting on September 18, 2026.
Forward Industries urges opposition to SkyAI board
The aggressive move stems from SkyAI’s earlier rejection of an acquisition offer and deep-seated concerns over corporate governance practices.
This boardroom battle, playing out on the NASDAQ exchange, highlights growing investor frustration within the Solana ecosystem. Forward Industries, operating from Austin, TX, and the activist shareholders accuse SkyAI’s current leadership of failing to deliver value and enacting measures that dilute shareholder rights. The conflict could significantly reshape the future of SkyAI and its substantial Solana holdings.
Pressure on SkyAI’s board leadership has reached a fever pitch. Forward Industries, itself a major player in the Solana treasury strategy space, released a pointed open letter outlining its grievances. The letter urged SkyAI shareholders to withhold their votes from all five incumbent director nominees, arguing their continued tenure isn’t in the best interest of the company or its investors.
Adding to the dissent, Forward also pushed for a vote against SkyAI’s proposed 2026 Equity Incentive Plan. This plan, if approved, would authorize the issuance of 5.145 million additional shares for stock-based compensation, diluting shareholders by more than 7% in the process.
Separately, Bastion Trading and its affiliated shareholders, who collectively control a 9.99% stake in SkyAI, voiced similar criticisms. In a September 3 SEC filing, the group declared its intention to vote “WITHHOLD ALL” on the company’s five director nominees. They cited specific issues like recent bylaw changes that reportedly weakened shareholder rights and the adoption of a “poison pill” plan without a shareholder vote.
Rejected Acquisition Fuels The Challenge
The current board challenge directly follows SkyAI’s refusal to engage with Forward Industries’ acquisition proposal. In June 2026, Forward Industries made an all-stock offer to acquire SkyAI for $1.55 per share. At the time, this represented a substantial 20% premium over SkyAI’s market valuation, signaling a clear opportunity for investors.
Despite the attractive premium, SkyAI’s board unanimously rejected the proposal on July 17, 2026. This decision left Forward Industries with few options other than to escalate its efforts directly to SkyAI’s shareholder base.
Since the rejection, the market trajectories of the two companies have diverged sharply. Forward Industries’ shares (FWDI) have climbed by over 50%, while SkyAI’s stock (SKYA) has remained stagnant, trading around $1.35. This disparity means Forward Industries’ initial exchange ratio now represents an even greater premium, potentially making SkyAI’s rejection appear more ill-advised in hindsight.
Forward Industries, under Chief Investment Officer Ryan Navi, has been actively building its global Solana treasury since September 2025. The firm has consistently sought to consolidate smaller players within the growing Solana blockchain ecosystem, viewing such mergers as critical for long-term value creation. Navi has openly stated the company’s commitment to these strategic consolidations.
Corporate Governance and Related-Party Scrutiny
Beyond the rejected acquisition, a host of corporate governance concerns underpin the activist campaigns. Both Forward Industries and Bastion Trading have cast a critical eye on SkyAI’s internal dealings, particularly focusing on related-party arrangements that raise questions about transparency and potential conflicts of interest.
Forward’s open letter specifically highlighted transactions involving companies controlled by James Zhang, the brother of SkyAI’s Chief Investment Officer and director, Yuwen (Alice) Zhang. These arrangements include warrants issued to one of James Zhang’s companies, which SkyAI valued at more than $100 million. Such agreements often draw intense scrutiny from shareholders, especially when perceived to benefit insiders over broader investor interests.
SkyAI’s Strategic Shift Under Fire
SkyAI, formerly known as Sharps Technology, has undergone a notable strategic pivot towards what it calls “Agentic Finance for the Global South.” This new direction combines stablecoin infrastructure with artificial intelligence, marking a significant change from its previous operations. While ambitious, this strategic shift and its execution are now under intense shareholder scrutiny amid the governance concerns.
The company also controls the fifth-largest publicly traded Solana treasury, holding 2,009,494 SOL worth roughly $207 million. This substantial digital asset holding is a key component of its valuation and a prime target for companies like Forward Industries looking to expand their influence within the Solana network. Shareholders are keen to ensure its management is sound.
The Broader Solana Ecosystem Context
This boardroom battle unfolds against a backdrop of a dynamic and rapidly evolving Solana ecosystem. Forward Industries stands as the largest Solana treasury company, holding an impressive 7,013,536 SOL worth more than $722 million. Its aggressive pursuit of SkyAI underscores a broader trend of consolidation within the decentralized finance (DeFi) sector, particularly for assets built on high-throughput blockchains like Solana.
The Solana token itself has shown resilience, trading around $103 on Wednesday, 2026-09-09. This price point is just a few ticks below its seven-month high of $110, reached two weeks ago. A strong underlying asset price often fuels strategic moves and investment in projects built upon its network, intensifying competition among ecosystem participants.
Forward Industries says it remains open to a potential “strategic transaction” with SkyAI, despite the ongoing challenge. This suggests that while a proxy fight is underway, the door for a negotiated outcome may not be entirely closed. The market will be watching closely as the September 18 annual meeting approaches, particularly given SkyAI’s market capitalization of approximately $58 million as of September 8, 2026.
The outcome of this Solana treasury challenge could set a precedent for future shareholder activism in the crypto sector. It underscores the increasing demand for strong corporate governance and accountability as digital asset firms mature and attract larger institutional investments. The forthcoming annual meeting will be a crucial moment for SkyAI’s leadership and its shareholders alike.