#United States #Wilmington #Reverse Stock Split #Brand Engagement Network #BNAI

Brand Engagement Network's Reverse Stock Split Explained

Brand Engagement Network Inc. (commonly known as BEN) has made headlines today by announcing a 1-for-10 reverse stock split, which will take effect at 12:01 AM Eastern Time on December 12, 2025. This pivotal decision comes as the current economic landscape continually shifts and reflects the company’s commitment to maintaining market integrity while strengthening its position within the industry.

What is a Reverse Stock Split?

A reverse stock split, in simple terms, is a corporate action that reduces the total number of a company's outstanding shares while simultaneously increasing the share price proportionately. In this particular case, every ten shares of BEN's common stock will be consolidated into a single share. As a result, stockholders will see a direct impact on their share count, transforming a ten-share holding into one share once the split is executed.

Objective of the Stock Split

The primary motivation behind this reverse stock split is to elevate the share price, thereby aligning it with trading standards on major stock exchanges, particularly Nasdaq, where BEN is listed under the ticker symbol “BNAI.” By managing the stock's trading price, the company aims to attract a more institutional investor base and enhance its overall market perception. Furthermore, this strategic move does not alter the total market capitalization of the company, ensuring it remains firmly rooted in its operational commitments.

What Happens Next?

Following the reverse stock split, trading will continue on the Nasdaq Capital Market. The shares will adjust accordingly, reflecting the newly split value. Interestingly, fractional shares will not be issued as a result of this action; instead, stockholders who would have received such shares will be compensated with a cash payment based on the market price preceding the adjustment. In essence, this should provide a seamless transition for shareholders, whether they hold shares in book-entry accounts or via brokers, as no actions will be required from their end for adjustments.

Administrative Details

The company has appointed Continental Stock Transfer & Trust Company as the exchange agent responsible for overseeing this split, ensuring that all processes run smoothly and efficiently. Investors and interested parties eager for additional information can find comprehensive details in the company's Form 8-K, which was filed with the Securities and Exchange Commission on December 1, 2025.

About Brand Engagement Network, Inc.

Founded with the aim to innovate in the realm of AI-driven communication, Brand Engagement Network, Inc. is at the forefront of developing conversational AI agents tailored for heavily regulated industries, including healthcare, finance, and retail. Their flagship product, the Engagement Language Model (ELM™), allows businesses to bolster their customer engagement through enhanced digital channels, supporting compliance and efficiency—a critical nexus in today’s AI landscape. With 21 patents and a growing intellectual property portfolio, BEN is poised for extensive growth amid increasing demands for AI solutions across various sectors.

Final Thoughts

This reverse stock split marks an important chapter in Brand Engagement Network’s journey. As the company aims to position itself for future growth and adaptability, shareholders and the market will closely watch how this action will impact its stock performance and overall market strategy. While some may view reverse splits with skepticism, it can also signify a strategic pivot towards future earnings potential and operational stability. For more updates, interested parties can visit their official website.