SkyAI faces board challenge over dilution plan from shareholder group

Solana-focused treasury management firm SkyAI is facing a boardroom challenge from a shareholder group led by would-be acquirer Forward Industries, opposing a new equity compensation plan.

The dissident shareholder group, which includes Forward Industries, has nominated three candidates to SkyAI’s board. The challenge centers on a proposed equity incentive plan that would authorize the issuance of 5.145 million new shares for employee stock-based compensation.

This proposed share issuance represents an approximate 7.2% dilution of SkyAI’s existing equity. Forward Industries, which had previously made an acquisition offer for SkyAI, is leading the opposition to the plan.

The board challenge sets the stage for a shareholder vote on both the director nominations and the contentious dilution plan at the company’s upcoming annual meeting. The outcome will determine control over SkyAI’s corporate strategy and capital structure.