SkyAI launches securities buyback worth about $201.3 million
Key Facts
SkyAI announced on October 19, 2026, the launch of a cash tender offer to repurchase its shares and eligible warrants, according to its filing with the U.S. Securities and Exchange Commission. The company said the offer had actually commenced on October 16, 2026, following its earlier announcement of plans to repurchase its securities. The aggregate purchase price would be approximately $201.3 million if the offer is fully subscribed, according to the company's statement filed with the SEC. The company set the cash consideration at $3.00 per ordinary share, with an exercise-price deduction applied to the warrants covered by the offer. It added that the offer price represents approximately 0.95 times its net asset value, based on its calculation adjusted for the number of shares and warrants.
The offer seeks to purchase up to 48,311,489 of the company's ordinary shares, according to the offer document filed with the SEC. It also covers up to 4,880,734 cash pre-funded warrants among the eligible categories designated by the company for the transaction. The targeted securities also include up to 9,939,850 crypto pre-funded warrants, a separate category in the offer details. The company additionally included up to 3,955,293 strategic warrants, according to the figures in its repurchase filing. For eligible warrants, an exercise price of $0.0001 per warrant is deducted from the consideration set for each share, under the pricing terms.
SkyAI said its cash balance stood at approximately $223.8 million as of October 16, 2026, coinciding with the launch of the offer. The offer to purchase identified the company's available cash as the source of funding for the consideration payable for accepted securities, as well as the costs of carrying out the transaction. The document stated that the offer is not subject to a financing condition under the terms governing completion of the securities repurchase. The company also announced the completion of the sale of its Solana holdings in its update accompanying the launch of the cash tender offer. Following completion of the sale, it said the offer was "not conditional on the price of Solana," removing the link between its execution and the cryptocurrency's price.
The company had announced in an earlier update that its cash balance stood at approximately $204.6 million as of October 14, 2026. At that date, it still held approximately 210,000 locked units of Solana, according to its asset update filed with the SEC. It said the average selling price for a mix of liquid and locked units over the days preceding that update was $107.51 per unit after fees. In describing its business, SkyAI says it is building a financial platform using stablecoin rails on the Solana network. The company adds in its filing that the platform combines these rails with artificial intelligence as part of the business it continues to describe in its announcements.
The buyback follows the rejection by SkyAI's board of the latest non-binding takeover offer from Forward Industries. The board said in the announcement of its intention to repurchase securities that it had concluded the offer "undervalues SkyAI." The rejected offer would have exchanged each SkyAI share for 0.306 shares in Forward Industries, which trades under the ticker FWDI. The board described the repurchase of the company's securities as a "disciplined use of capital" that provides liquidity to shareholders and warrant holders seeking to exit. However, neither the company nor its board made a recommendation to security holders on whether to participate in the offer.
Completion of the offer requires a minimum participation threshold of 50% for the shares sought for purchase, according to the terms set out in the transaction document. A minimum threshold of 50% also applies to strategic warrants, which are subject to their own participation test under the completion conditions. Cash and crypto pre-funded warrants are counted together when testing whether the minimum participation threshold has been met, according to the same document. The offer is scheduled to expire one minute after 11:59 p.m. New York time on October 29, 2026, unless extended or terminated early. The offer document cautioned that a broker may set a deadline for receiving tender instructions earlier than the official expiration time announced by the company.