Beneficient Faces Delisting Notice

TL;DR

BEN got a delisting warning, might get kicked off NASDAQ.

AI Summary

Beneficient (NASDAQ: BEN) filed an 8-K on July 19, 2024, reporting a notice of delisting or failure to satisfy a continued listing rule or standard as of July 16, 2024. The company, incorporated in Nevada, is based in Dallas, Texas, and operates in finance services.

Why It Matters

This filing indicates potential issues with Beneficient's compliance with stock exchange listing requirements, which could impact its stock's tradability and investor confidence.

Risk Assessment

Risk Level: high — A notice of delisting or failure to meet listing standards poses a significant risk to the company's stock market presence and investor confidence.

Key Numbers

• 001-41715 — Commission File Number (Identifies the specific SEC filing)

Key Players & Entities

• Beneficient (company) — Registrant
• NASDAQ (company) — Stock Exchange
• July 16, 2024 (date) — Date of earliest event reported
• July 19, 2024 (date) — Filing date
• 001-41715 (other) — Commission File Number
• 325 North St. Paul Street , Suite 4850 Dallas , Texas 75201 (address) — Principal executive offices
• (214) 445-4700 (phone_number) — Registrant's telephone number

FAQ

Key Financial Figures

• $0.001 — ares of Class A common stock, par value $0.001 per share BENF Nasdaq Stock Market LL
• $2,500,000 — intain stockholders' equity of at least $2,500,000 or meet the alternative compliance stan

Filing Documents

• ben-20240716.htm (8-K) — 30KB
• 0001775734-24-000035.txt ( ) — 198KB
• ben-20240716.xsd (EX-101.SCH) — 2KB
• ben-20240716_def.xml (EX-101.DEF) — 16KB
• ben-20240716_lab.xml (EX-101.LAB) — 28KB
• ben-20240716_pre.xml (EX-101.PRE) — 17KB
• ben-20240716_htm.xml (XML) — 4KB

01 Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing

Item 3.01 Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing On July 16, 2024, Beneficient (the "Company") received a letter (the "Notice") from the Listing Qualifications Department of The Nasdaq Stock Market LLC (the "Staff") indicating that it is no longer in compliance with the minimum stockholders' equity requirement (the "Minimum Stockholders' Equity Requirement") for continued listing on The Nasdaq Capital Market ("Nasdaq") pursuant to Nasdaq Listing Rule 5550(b)(1). Nasdaq Listing Rule 5550(b)(1) requires listed companies to maintain stockholders' equity of at least $2,500,000 or meet the alternative compliance standards relating to the market value of listed securities or net income from continuing operations, which the Company does not currently meet. Pursuant to the Notice and the Listing Rules of Nasdaq, Nasdaq has provided the Company with 45 calendar days, or until August 30, 2024, to submit a plan to regain compliance with the Minimum Stockholders' Equity Requirement. If the Company's plan to regain compliance is accepted, the Staff can grant an extension of up to 180 calendar days from the date of the Notice to evidence compliance. If the Company's plan to regain compliance is not accepted, or if it is accepted and the Company does not regain compliance in the timeframe required by Nasdaq, the Staff could provide notice that the Company's shares of Class A common stock, par value $0.001 per share ("Class A common stock"), are subject to delisting. In such an event, the Company would have the right to request a hearing before a Nasdaq Hearings Panel. The hearing request would automatically stay any suspension or delisting action pending the completion of the hearings process. The Notice has no immediate impact on the listing of the Class A common stock, which will continue to be listed and traded on Nasdaq under the symbol "BENF," subject to the Company's compliance with the other listing requirements

Forward-Looking Statements

Forward-Looking Statements Some of the statements contained in this Current Report on Form 8-K 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 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. Many factors could cause actual future events to differ materially from the forward-looking statements in this Current Report on Form 8-K, including but not limited to: our ability to cure any deficiencies in compliance with the Minimum Stockholders' Equity Requirement or maintain compliance with other Nasdaq listing rules; our eligibility for additional compliance periods, if necessary, in which to seek to regain compliance with the Minimum Stockholders' Equity Requirement; our ability to ultimately obtain relief or extended periods to regain compliance from Nasdaq, if necessary, or to meet applicable Nasdaq requirements for any such relief or extension; and risks related to the substantial costs and diversion of management's attention and resources due to these matters, and 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

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. BENEFICIENT Date: July 19, 2024 By: /s/ Gregory W. Ezell Gregory W. Ezell Chief Financial Officer

View Full Filing

View this 8-K filing on SEC EDGAR