Brand Engagement Network (NASDAQ: BNAI) stock more than doubled during intraday trading Wednesday following the announcement of a $4.95 million private placement. Additionally, BEN announced the concurrent appointment of Paul Chang as Co-CEO.
Brand Engagement (BNAI) recently announced the closure of a private placement with its existing investors, raising a total of $4.95 million. This strategic move bolsters the company’s financial position, providing increased flexibility to advance the development of its human-like, business-safe conversational AI assistants. Simultaneously, the company announced the promotion of Paul Chang to Co-CEO, joining Michael Zacharski in leading the organization.
The private placement, supported by a group of existing BEN shareholders, comprises a combination of stock and warrants to purchase common stock, priced at $2.50 per share. This valuation notably exceeds the current trading price of the company’s common stock, underscoring investor confidence in BEN’s growth prospects. Additionally, certain investor group members have committed to providing additional capital by exercising their warrants if the company failed to raise an extra $3.25 million by October 31, potentially bringing the total investment to $8.25 million.
Chris Gaertner, Chairman of BEN’s Board of Directors, emphasized the strategic importance of this investment, stating,
“This investment will allow BEN to continue to fund its business plan as it seeks to execute on its growth and revenue strategies.”
Concurrently, BEN has promoted Paul Chang to co-CEO alongside Michael Zacharski. Chang, who joined the company as Global President in May 2023, brings a wealth of experience from his tenure at IBM and various start-ups, where he spearheaded the creation of new markets for emerging technologies. As Co-CEO, Chang will lead BEN’s commercial operations, focusing on market validation and growth, while Zacharski will concentrate on exploring growth through M&A and strategic transactions.
Brand Engagement (NASDAQ: BNAI) Stock Movement
On Wednesday, BNAI stock soared 107.87%, closing at $2.64, marking a 121.85% increase for the week. The trading volume was 108,220,064 shares, significantly higher than the average daily volume of 1.85 million.
Edward Cooke is a financial analyst, freelance writer, and editor. He has six years of experience in financial journalism. He has an in-depth understanding of equities markets, tracking major indices and providing real-time analysis on stock price movements, corporate earnings, and market sentiment.
