Brand Engagement Network Inc. (NASDAQ: BNAI) announced financial transactions that have strengthened its balance sheet and simplified its capital structure. The company generated approximately $1.46 million in cash proceeds from the exercise of warrants, incentive stock options, and long-term incentive plan awards. Additionally, the company converted $737,500 of outstanding debt into shares of common stock, resulting in the issuance of an aggregate 93,313 shares.
These transactions have increased the company's total common shares outstanding to an estimated 5,778,514, with a public float of approximately 3,129,047 shares. For investors, this financial restructuring demonstrates management's proactive approach to capital management and reduces debt obligations that could have constrained future operations.
The company also provided important updates regarding its public warrants following a 1-for-10 reverse stock split that became effective on December 12, 2025. The warrant exercise price has been adjusted to $115.00 per share, with the number of underlying shares now standing at 1,644,096. This represents potential gross proceeds of approximately $189.1 million if all warrants are fully exercised.
This announcement is particularly significant for current warrant holders and potential investors, as it clarifies the post-split adjustments that affect the economics of these securities. The company noted that certain trading platforms have not yet fully reflected these adjustments and are being updated, which could impact trading decisions until the corrections are complete.
For the artificial intelligence industry, where capital-intensive research and development is crucial, this financial strengthening positions Brand Engagement Network to continue developing its enterprise-grade AI solutions. The company specializes in secure, multimodal AI for regulated and high-impact industries, helping organizations modernize operations and enhance customer engagement through its proprietary Engagement Language Model technology.
The potential $189.1 million in future capital from warrant exercises represents a substantial funding opportunity that could accelerate the company's growth initiatives without immediate dilution to existing shareholders. This financial flexibility is especially important in the competitive AI sector, where technological advancement requires sustained investment.
Investors can find more detailed information in the company's full press release available at https://ibn.fm/Dwofl. Additional information about Brand Engagement Network's AI solutions is available through their corporate website at https://www.BrandEngagementNetwork.com.
