Beneficient Adds $35 Million In Permanent Equity, Aiming For Nasdaq Compliance

Beneficient BENF shares are trading higher premarket on Friday after the company disclosed that its subsidiary, Beneficient Company Holdings, L.P., has completed a transaction where approximately $35 million of its preferred equity was redesignated as non-redeemable.

This transaction resulted in the addition of approximately $35 million in permanent equity to the balance sheet.

Consequently, the company now believes it meets the Nasdaq Minimum Stockholders’ Equity Requirement, with stockholders’ equity of at least $2.5 million. However, Nasdaq’s final determination will confirm the company’s compliance.

Beneficient also announced the appointment of Karen J. Wendel as an independent member of its Board of Directors as of November 21.

Apart from this, Beneficient, through its subsidiary Beneficient Fiduciary Financial, L.L.C., provided an update to the State of Kansas Joint Committee on Fiduciary Financial Institutions Oversight.

The update highlighted the company’s business operations, digital innovations in the alternative asset industry, and its contributions to economic development in Kansas communities.

During its testimony, Beneficient executives reviewed the company’s fiscal second-quarter results for the period ending September 30, 2024, marking the second consecutive quarter of positive diluted earnings per share for its common shareholders.

The company highlighted advancements in its financial industry-focused business, including new technology innovations, an authorization from its board to complete up to $5 billion in fiduciary financings, and a transaction that reclassified certain preferred equity, increasing Beneficient’s permanent equity by $126 million.

The testimony also emphasized progress on key projects funded primarily by proceeds generated under the Kansas Technology-Enabled Fiduciary Financial Institutions (TEFFI) Act.

Price Action: BENF shares are up 18.2% at $1.04 premarket at the last check Friday.

Image via Shutterstock

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