Beneficient

A federal jury in New York found former chairman and CEO Brad Heppner guilty of securities fraud, wire fraud, conspiracy and making false statements. Beneficient said Heppner was dismissed after the allegations came to light and the company is cooperating with the investigation; the verdict enables the company to challenge alleged debts owed to an entity controlled by Heppner. On the financial side, Beneficient is under pressure: market capitalization is about $48.9 million, the stock is down 51% year-to-date, and the company is burning cash quickly with higher near-term liabilities. Beneficient is reviewing additional claims against Heppner and affiliated entities. » Plus sur de.investing.com

Beneficient received a primary capital commitment of $8.75 million from Quartus AI Fund LP and issued resettable convertible preferred stock convertible into class A common stock. The transaction increases collateral for the ExAlt loan portfolio by about $9.77 million and pro forma raises tangible book value for shareholders from zero to $9.77 million. Beneficient records an unrealized gain of roughly $1.2 million; the capital infusion is intended to address an urgent liquidity need. Conversion of the preferred stock requires shareholder approval; Beneficient plans to file a proxy statement with the SEC. » Plus sur de.investing.com

At the annual meeting about 91.7% of eligible voters approved and confirmed the re-election of Peter T. Cangany, Patrick J. Donegan and Karen J. Wendel as Class A directors and the appointment of Weaver and Tidwell as independent auditors. Shareholders increased the Class A shares reserved for the Beneficient 2023 LTIP. The company also reported early repayment of loans of about $27.5 million, a $3 million capital commitment closing with Cork & Vines Fund I and the settlement of claims related to GWG Holdings through court-approved settlement. Beneficient again meets NASDAQ listing requirements and appointed Mack H. Hicks to the board. » Plus sur de.investing.com