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SkyAI, Inc. (NASDAQ: SKYA) stock surged in Monday's premarket trading after the company announced plans Sunday to launch a cash tender offer worth up to $201 million.
The company plans to repurchase up to 95% of its outstanding common shares and several classes of warrants at $3 per share or warrant.
The offer price represents a 65% premium to SkyAI's Oct. 9 closing price and more than double its 60-day volume-weighted average share price.
SkyAI expects to launch the tender offer around Oct. 15. The offer will remain open for 10 business days unless extended or terminated early.
The proposed transaction covers up to 46.37 million common shares and 20.72 million warrants.
However, the offer requires holders to tender at least 50% of each eligible securities class. It also depends on Solana (CRYPTO: SOL) remaining above $100 throughout the offer period.
SkyAI plans to fund the repurchases using existing cash and proceeds from Solana sales.
The company recently sold approximately 1 million Solana tokens, representing half its holdings. It still holds roughly 1 million tokens and may sell more depending on market conditions.
SkyAI said its cash and digital assets exceed the maximum purchase price, eliminating the need for outside financing.
Meanwhile, the company has suspended purchases under its existing share repurchase program.
Separately, SkyAI's board unanimously rejected the latest unsolicited acquisition proposal from Forward Industries, Inc. (NASDAQ: FWDI).
Forward Industries proposed exchanging 0.306 of its shares for each SkyAI share.
However, SkyAI's board concluded that the proposal undervalued the company and offered insufficient certainty over timing and value.
The board instead favored the cash tender offer, which would allow investors to sell their holdings while giving remaining shareholders exposure to SkyAI's long-term strategy.
SkyAI plans to continue developing its artificial intelligence-driven financial platform, combining stablecoin infrastructure on Solana with AI capabilities.
The tender offer has not yet commenced, and its final terms remain subject to regulatory requirements and other conditions.
SKYA Price Action: SkyAI shares were up 24.68% at $2.26 during premarket trading on Monday, according to market data.
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