Brand Engagement Network Secures $1.5M in Private Placement and Debt Repayment

Overview

In a strategic financial move, Brand Engagement Network, Inc. (Nasdaq: BNAI), a provider of cutting-edge artificial intelligence solutions, has successfully secured $1.518 million through a premium private placement. This transaction marks a significant step in strengthening the company's balance sheet and ensuring its financial flexibility moving forward.

Key Developments

The recent financial maneuvers included the completion of warrant exercises that generated $818,302.70 in cash. Specifically, BEN saw considerable gross proceeds from these exercises, which included:

- 19,750 shares exercised at $25.00 per share, yielding $493,750.
- 8,202 shares exercised at $37.00 per share, bringing in $303,474.
- 5,701 shares also exercised at a lower price of $3.70, contributing $21,078.70.

In addition to these exercises, the company took the opportunity to repay $640,332.46 in outstanding loans, with a substantial portion of this amount linked to obligations to Hana Bank in South Korea. This action fulfills its liabilities under a previously established Asset Purchase Agreement, thereby eliminating legacy debts.

Details of the Private Placement

The newly arranged private placement involves an issuance of 24,000 shares of common stock priced at $63.25 each. The investment, made by Ben Capital Fund I, LLC, will be executed in three equal installments, each totaling $506,000. These closings are scheduled for January 30, February 25, and March 25 of 2026, with the significant detail that this transaction will not include any warrant coverage, a strategy to maximize investment value.

Strategic Remarks

Tyler Luck, the Chief Executive Officer of Brand Engagement Network, expressed satisfaction with this week's developments, stating, "This week reflects continued execution against our financial strategy." He elaborated that the combination of warrant exercises, debt repayments, and securing a premium-priced private placement has considerably fortified the company’s balance sheet. This positions BEN to proceed with a focused and flexible framework as it pursues its business objectives.

About Brand Engagement Network

Brand Engagement Network specializes in secure, enterprise-grade AI solutions tailored for various sectors, allowing organizations to foster natural conversations and automate workflows effectively. With innovative technology designed for regulated industries, BEN enables businesses to modernize operations and enhance customer engagement through personalized, multimodal AI interactions. The company is renowned for its proprietary technology, particularly its Engagement Language Model (ELM™), which incorporates governance, compliance, and reliability into its core design. You can discover more about BEN’s offerings by visiting brandengagementnetwork.com.

Conclusion

This recent financial leverage not only signifies confidence in Brand Engagement Network's future but also reflects the company’s commitment to its financial strategy. With a robust balance sheet and a clear path toward future growth, BEN remains poised to tackle the challenges and opportunities that lie ahead in the rapidly evolving AI landscape.