Beneficient Consummates Transaction to Increase Permanent Equity by $126 Million
Beneficient (NASDAQ: BENF), a technology-enabled financial services holding company, has announced the completion of a previously disclosed transaction. The deal involves the redesignation of approximately $126 million of preferred equity held by its subsidiary, Beneficient Company Holdings, L.P., as non-redeemable.
This transaction, which was approved by the Company's founders holding the majority of the preferred equity, is expected to result in the reclassification of about $126 million from temporary equity to permanent equity on Beneficient's balance sheet as of September 30, 2024. This move is anticipated to strengthen the Company's financial position by increasing its permanent equity.
Beneficient (NASDAQ: BENF), una holding di servizi finanziari abilitati dalla tecnologia, ha annunciato il completamento di una transazione precedentemente comunicata. L'affare implica la ridefinizione di circa $126 milioni di capitale preferenziale detenuto dalla sua controllata, Beneficient Company Holdings, L.P., come non rimborsabile.
Questa transazione, approvata dai fondatori della Società che detengono la maggioranza del capitale preferenziale, dovrebbe comportare la riclassificazione di circa $126 milioni da capitale temporaneo a capitale permanente nel bilancio di Beneficient a partire dal 30 settembre 2024. Questo passaggio è previsto per rinforzare la posizione finanziaria della Società aumentando il suo capitale permanente.
Beneficient (NASDAQ: BENF), una holding de servicios financieros habilitados por la tecnología, ha anunciado la finalización de una transacción previamente divulgada. El acuerdo involucra la redesignación de aproximadamente $126 millones de capital preferente que posee su subsidiaria, Beneficient Company Holdings, L.P., como no canjeable.
Esta transacción, que fue aprobada por los fundadores de la Compañía que poseen la mayoría del capital preferente, se espera que resulte en la reclasificación de aproximadamente $126 millones de capital temporal a capital permanente en el balance de Beneficient a partir del 30 de septiembre de 2024. Se anticipa que este movimiento fortalecerá la posición financiera de la Compañía al aumentar su capital permanente.
Beneficient (NASDAQ: BENF)는 기술 기반 금융 서비스 지주 회사로, 이전에 공개된 거래 완료를 발표했습니다. 이 거래는 자회사인 Beneficient Company Holdings, L.P.가 보유한 약 $126 백만의 우선주를 상환 불가능으로 재지정하는 내용을 포함하고 있습니다.
이번 거래는 우선주 대부분을 보유한 회사 창립자들이 승인한 것으로, 2024년 9월 30일 기준으로 Beneficient의 재무제표에서 약 $126 백만이 임시 자본에서 영구 자본으로 재분류될 것으로 예상됩니다. 이 조치는 회사의 영구 자본을 증가시켜 재무 상태를 강화할 것으로 기대됩니다.
Beneficient (NASDAQ: BENF), une société holding de services financiers bénéficiant de la technologie, a annoncé l'achèvement d'une transaction précédemment divulguée. L'accord concerne la redésignation d'environ 126 millions de dollars de capital préférentiel détenu par sa filiale, Beneficient Company Holdings, L.P., comme non remboursable.
Cette transaction, qui a été approuvée par les fondateurs de la société détenant la majorité du capital préférentiel, devrait entraîner la reclassement d'environ 126 millions de dollars de capital temporaire à capital permanent dans le bilan de Beneficient à partir du 30 septembre 2024. Ce mouvement devrait renforcer la position financière de la société en augmentant son capital permanent.
Beneficient (NASDAQ: BENF), ein technologiegestütztes Finanzdienstleistungs-Holding-Unternehmen, hat den Abschluss einer zuvor bekannt gegebenen Transaktion angekündigt. Der Deal umfasst die Neudefinition von etwa $126 Millionen von Vorzugsaktien, die von seiner Tochtergesellschaft, der Beneficient Company Holdings, L.P., gehalten werden, als nicht einlösbar.
Diese Transaktion, die von den Gründern des Unternehmens genehmigt wurde, die die Mehrheit der Vorzugsaktien halten, wird voraussichtlich zur Umklassifizierung von etwa $126 Millionen von temporärem Eigenkapital zu permanentem Eigenkapital in der Bilanz von Beneficient zum 30. September 2024 führen. Diese Maßnahme soll die finanzielle Position des Unternehmens stärken, indem sie das permanente Eigenkapital erhöht.
- Increase of $126 million in permanent equity, strengthening the company's financial position
- Successful completion of a previously announced transaction, demonstrating execution capability
- None.
Insights
This transaction is a significant move for Beneficient, effectively strengthening its balance sheet by reclassifying
- Improved financial stability: Permanent equity is viewed more favorably by investors and creditors as it represents a long-term commitment to the company.
- Enhanced capital structure: The increase in permanent equity could potentially improve the company's debt-to-equity ratio, making it more attractive for future financing opportunities.
- Increased shareholder confidence: This move demonstrates the founders' commitment to the company's long-term success, which could positively impact investor sentiment.
However, it's important to note that this transaction doesn't bring new capital into the company; it's merely a reclassification of existing equity. The impact on day-to-day operations and liquidity may be Investors should monitor how this change affects Beneficient's financial ratios and overall financial health in upcoming quarterly reports.
DALLAS, Oct. 04, 2024 (GLOBE NEWSWIRE) -- Beneficient (NASDAQ: BENF) (“Ben” or the “Company”), a technology-enabled financial services holding company announces that its subsidiary Beneficient Company Holdings, L.P. consummated a previously announced transaction pursuant to which approximately
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, small-to-midsized institutions and General Partners seeking exit options, anchor commitments and valued-added services for their funds− with solutions that could help them unlock the value in their alternative assets. Ben’s AltQuote™ tool provides customers with a range of potential exit options within minutes, while customers can log on to the AltAccess® portal to explore opportunities and receive proposals in a secure online environment.
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.
For more information, visit www.trustben.com or follow us on LinkedIn.
Investors
Contacts
Matt Kreps: 214-597-8200, mkreps@darrowir.com
Michael Wetherington: 214-284-1199, mwetherington@darrowir.com
Investor Relations: investors@beneficient.com
Disclaimer and Cautionary Note Regarding Forward-Looking Statements
Certain of the statements contained in this press release are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements can be generally identified by the use of words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” “would,” and, in each case, their negative or other various or comparable terminology. These forward-looking statements reflect our views with respect to future events as of the date of this document and are based on our management’s current expectations, estimates, forecasts, projections, assumptions, beliefs and information. Although management believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurance that these expectations will prove to have been correct. All such forward-looking statements are subject to risks and uncertainties, many of which are outside of our control, and could cause future events or results to be materially different from those stated or implied in this document. It is not possible to predict or identify all such risks. These risks include, but are not limited to, the risk factors that are described under the section titled “Risk Factors” in our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and other filings with the Securities and Exchange Commission (the “SEC”). These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this document and in our SEC filings. We expressly disclaim any obligation to publicly update or review any forward-looking statements, whether as a result of new information, future developments or otherwise, except as required by applicable law.
FAQ
What is the value of the preferred equity redesignated as non-redeemable by Beneficient (BENF)?
How will the transaction affect Beneficient's (BENF) balance sheet as of September 30, 2024?
Who approved the transaction for Beneficient (BENF)?
When did Beneficient (BENF) consummate the transaction to increase permanent equity?
