Brand Engagement Network Inc. (NASDAQ: BNAI) announced on Wednesday that it has strengthened its financial position through a series of capital structure transactions. The company reported generating 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.
According to the company, these transactions have simplified its capital structure and improved its balance sheet. The moves bring total common shares outstanding to an estimated 5,778,514, with a public float of approximately 3,129,047 shares. This financial restructuring comes as the company continues to develop its enterprise-grade artificial intelligence solutions designed for regulated and high-impact industries.
The company also provided an important update 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. The number of underlying shares has been adjusted to 1,644,096, representing potential gross proceeds of approximately $189.1 million if all warrants are fully exercised. The company noted that certain trading platforms have not yet fully reflected these post-split adjustments and are in the process of being updated.
Brand Engagement Network, which operates as BEN, specializes in providing secure artificial intelligence solutions that enable natural conversations, workflow automation, and real-world execution across text, voice, and avatar-based experiences. The company's platform is built with governance, compliance, and reliability embedded by design, making it suitable for organizations in regulated sectors. For more detailed information about the company's technology and services, visit https://www.BrandEngagementNetwork.com.
The financial transactions announced this week represent a strategic move to optimize the company's capital structure as it continues to develop its proprietary Engagement Language Model (ELM) technology. By converting debt to equity and generating cash through warrant exercises, the company has positioned itself with greater financial flexibility. The warrant adjustments following the reverse stock split ensure proper alignment with the company's current share structure and provide clarity for investors regarding potential future equity dilution and capital raising opportunities.
