Beneficient Closes $1.36 Million Capital Transaction and Series B-5 Primary Capital Event

Beneficient, a Nevada corporation, recently finalized a primary capital transaction with a customer through one of its subsidiaries. The transaction involved the acquisition of a limited partner interest in an investment fund with a net asset value of $1,361,926. In exchange for this interest, the customer received 136,193 shares of Beneficient’s Series B-5 Resettable Convertible Preferred Stock, which is convertible into shares of the company’s Class A Common Stock. The issuance of the Series B-5 Preferred Stock was conducted in reliance upon an exemption provided under the Securities Act of 1933.

The Series B-5 Preferred Stock is initially convertible into Class A Common Stock at a price of $0.6940 per share. A total of 1,962,435 shares of Class A Common Stock may be issued upon the conversion of the Series B-5 Preferred Stock. The Company also filed a certificate of designation for the Series B-5 Preferred Stock, outlining its rights, preferences, privileges, and restrictions.

Regarding the transaction, Beneficient disclosed material modifications to the rights of security holders and amendments to the company’s articles of incorporation. The Series B-5 Preferred Stock includes provisions for both optional and mandatory conversions, with specific conversion rates and conditions detailed in the B-5 Certificate of Designation.

Beneficient announced that a press release was issued on January 6, 2025, concerning the closing of the transaction, underscoring the company’s commitment to providing innovative capital solutions for alternative asset holders. The company believes this transaction will contribute positively to its tangible book value for stockholders.

Furthermore, Beneficient stated that this transaction signifies a step forward in its strategic objectives and commitment to adding value for stockholders through focused liquidity and primary capital solutions.

Beneficient continues to expand its GP Primary Commitment Program aimed at providing primary capital solutions and financing anchor commitments to general partners during fundraising efforts, aligning with increasing demand for primary commitments in the market.

The company emphasized that the contents of the filing are forward-looking statements within the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The completion and impacts of transactions are subject to factors outlined in their filings concerning risks, uncertainties, and other factors.

This news article is based on the recent 8-K SEC filing submitted by Beneficient, indicating the company’s progress in capital transactions and strategic growth endeavors.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Beneficient’s 8K filing here.

About Beneficient

Beneficient, a technology-enabled financial services company, provides liquidity solutions and related trustee, custody and trust administrative services to participants in the alternative asset industry in the United States. It operates through Ben Liquidity, Ben Custody, and Customer ExAlt Trusts segments.