Brand Engagement Network (NASDAQ: BNAI) Reports Warrant Exercises, Debt Conversion

Shares of Brand Engagement Network, Inc. (BNAI) declined more than 35% in pre-market trading on Friday after the AI solutions provider received $818,302 in cash from the exercise of outstanding warrants and secured a $1.518 million private placement.

The company received cash proceeds from warrant exercises for 19,750 shares at $25 per share, 8,202 shares at $37 per share, and 5,701 shares at $3.70 per share.

Separately, the company secured a $1.518 million private placement with Ben Capital Fund I, at $63.25 per share, a 20% premium to Thursday’s closing price of $52.63. The investment will be funded in three equal installments through March 2026 and does not include any warrant coverage.

In January, the company also repaid around $640,000 in legacy loans, including obligations to Hana Bank in South Korea, satisfying liabilities under its 2023 asset purchase agreement.

The stock move may highlight investor concerns about dilution and capital needs, even as the company secured funds at a premium to market. Meanwhile, BNAI stock has run up over 2,800% in the past month. 

Brand Engagement Network stock rallied more than 40% on Wednesday after it said its latest warrants strengthened its financials. 

The stock has been on a relentless surge for the past few weeks driving retail optimism on the stock price. 

Strengthening Financials

The company said it has received $1.46 million in cash proceeds from the exercise of warrants, incentive stock options, and long-term incentive plan awards, with strike prices ranging from $16.58 to $37.00 per share. 

BNAI also converted $737,500 of outstanding debt into shares of common stock. 

"These warrant exercises and debt conversions further strengthen our balance sheet and simplify our capital structure," said CEO Tyler Luck. 

"We truly appreciate the support from all our shareholders, including the dedicated retail investors who've believed in BEN's long-term vision," Luck added.

New AI Deal With Velio

Brand Engagement Network last week announced a strategic partnership with Valio Technologies to establish an exclusive AI licensing framework for government and commercial markets across Africa. 

The agreement is anchored by a $2.05 million preferred equity investment, under which BNAI will hold a 25% equity stake in a newly formed South Africa–based joint venture, receive a 35% revenue share across offerings, get an exclusive license for government and private-sector markets across Africa, and perpetual term with right of first refusal on any sale.

The partnership included a memorandum of understanding with Nelson Mandela University to pilot a governed, AI-powered mental health support initiative for students, operating in a secure, institution-approved environment. 

The deal marked BNAI’s second major international AI licensing agreement, highlighting growing global demand for regulated, trustworthy AI solutions.

How Did Stocktwits Users React?

Retail sentiment around BNAI trended in ‘extremely bullish’ territory amid ‘extremely high’ message volume. 

One user said that BNAI cares about its retail investors, after its latest announcement around warrant exercises. 

https://stocktwits.com/BeatBuffet/message/643151373

Another bullish user said that the rally will run to $120 mark.

https://stocktwits.com/momoneyinfla/message/643150980

Shares in the company have jumped 1500% over the past 12 months.