Beneficient, a finance services company, has been notified by Nasdaq of non-compliance with its $1 minimum bid price requirement, potentially leading to delisting. The company's stock, trading under the ticker BENF, currently trading at $0.65 with a market capitalization of just $3.48 million, has fallen below the threshold for 30 consecutive business days as of January 13, 2025. According to InvestingPro data, the stock has lost over 97% of its value in the past year.
The Dallas-based company, incorporated in Nevada, has until July 14, 2025, to meet the bid price criterion. If Beneficient's stock reaches $1 or more for at least 10 consecutive business days before this deadline, Nasdaq will consider it back in compliance. InvestingPro analysis indicates a WEAK financial health score of 1.5 out of 10, with the company's next earnings report scheduled for February 13, 2025.
Beneficient could be granted an additional 180-day period to regain compliance if it meets all other Nasdaq Capital Market listing standards, except for the bid price. This may involve a reverse stock split, which the company is considering among other options to maintain its listing. InvestingPro identifies that the company is quickly burning through cash, with 11 additional key insights available to subscribers.
The company's Class A common stock and associated warrants, listed as BENFW, are still actively traded on Nasdaq. However, there is no guarantee that Beneficient will resolve the non-compliance issue to avoid delisting.
In other recent news, Beneficient, a provider of liquidity solutions for alternative assets, has been making significant strides in several areas. The company has reported a net income of $9.7 million for the second quarter of fiscal 2025, marking two consecutive quarters of profitability. Beneficient has also finalized a $1.36 million primary capital commitment to 8F Fund, LP, a fund focusing on sustainable aquaculture, and has announced plans to acquire Mercantile Bank (NASDAQ:MBWM) International Corp. for $1.5 million.
In line with these developments, Beneficient has regained compliance with Nasdaq's requirements, ensuring its continued listing on the exchange. The company has also added Karen J. Wendel (EPA:MWDP), an expert in banking, technology mergers and acquisitions, cybersecurity, private equity, and corporate governance, to its Board of Directors.
Despite a 55.9% decline in year-to-date net income and a 28% fall in year-to-date distributions compared to the previous year, Beneficient anticipates growth in demand for liquidity in its target markets, potentially expanding from $60 billion to $100 billion over the next five years.
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