BNAI Raised Fresh Capital – So Why Is The Stock Tanking Over 30% In Pre-Market Today?

• The company secured a $1.518 million private placement with Ben Capital Fund I, at $63.25 per share,
• The sale represents a 20% premium to Thursday’s closing price of $52.63.
• The company repaid around $640,000 in legacy loans, including obligations to Hana Bank in South Korea.

Shares of Brand Engagement Network, Inc. (BNAI) declined more than 35% in pre-market trading on Friday after the AI solutions provider received $818,302 in cash from the exercise of outstanding warrants and secured a $1.518 million private placement.

The stock slumped further after the opening bell, down 47% at the time of writing.

Fund Raising

The company received cash proceeds from warrant exercises for 19,750 shares at $25 per share, 8,202 shares at $37 per share, and 5,701 shares at $3.70 per share.

Separately, the company secured a $1.518 million private placement with Ben Capital Fund I, at $63.25 per share, a 20% premium to Thursday’s closing price of $52.63. The investment will be funded in three equal installments through March 2026 and does not include any warrant coverage.

In January, the company also repaid around $640,000 in legacy loans, including obligations to Hana Bank in South Korea, satisfying liabilities under its 2023 asset purchase agreement.

The stock move may highlight investor concerns about dilution and capital needs, even as the company secured funds at a premium to market. 

2026 Rally

The company’s shares have recently surged after announcing new AI-focused partnerships, with BNAI stock surging more than 2,800% in the past month.  

Recently, struck a deal with Valio Technologies to launch an exclusive AI joint venture in Africa, backed by a $2.05 million preferred equity investment. The partners also signed an MOU with Nelson Mandela University to pilot a secure, AI-powered mental health support program for students.

Retail Reaction

Despite the sharp intraday decline, retail sentiment on Stocktwits has remained in the ‘bullish’ territory over the past 24 hours, amid ‘extremely high’ message volumes.

One bullish user commented on the recipient of the share sale.

Another user expects the stock to fall even further. 

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Share

·

Add us on