DALLAS, Aug. 02, 2023 (GLOBE NEWSWIRE) — Beneficient (NASDAQ: BENF), a technology-enabled platform providing liquidity and related trust and custody services to holders of alternative assets, today announced that it has consummated the financing of a liquidity transaction for a customer with respect to multi-family real estate alternative assets with a net asset value of approximately $38 million. Pursuant to the terms, Ben now holds a fiduciary loan with an initial principal balance of approximately $38 million to certain of the trusts of which its affiliate serves as trustee, which acquired alternative assets in exchange for 3,768,995 shares of Beneficient’s Series B-1 Resettable Convertible Preferred Stock at a price of $10.00 of NAV per share.
Each share of Preferred Stock is convertible at the election of the holder into shares of Ben’s publicly traded Class A common stock (Nasdaq: BENF) based on an initial conversion price of $5.46 per share (the “Conversion Price”), subject to reset on certain dates based on a 5-day VWAP, adjustment and a floor price that is 50% of the initial Conversion Price.
About Beneficient
Beneficient (Nasdaq: BENF) – Ben, for short – is on a mission to democratize the global alternative asset investment market by providing traditionally underserved investors − mid-to-high net worth individuals and small-to-midsized institutions − with early liquidity exit solutions that could help them unlock the value in their alternative assets. Ben’s AltQuote™ tool provides customers with a range of potential liquidity exit options within minutes, while customers can log on to the AltAccess® portal to digitize their alternative assets in order to explore early exit opportunities, receive proposals for liquidity in a secure online environment, engage custodial services for the digital alternative assets and receive data analytics to better inform investment decision making. Its subsidiary, Beneficient Fiduciary Financial, L.L.C., received its charter under the State of Kansas’ Technology-Enabled Fiduciary Financial Institution (TEFFI) Act and is subject to regulatory oversight by the Office of the State Bank Commissioner.
This press release does not constitute an offer to sell, a solicitation to buy or an offer to purchase or sell any securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. The Preferred Stock have not been registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.
