Beneficient issues statement on indictment of former CEO

DALLAS - Beneficient (NASDAQ:BENF) announced Wednesday that it is cooperating with a federal investigation after its former Chairman and CEO, Brad Heppner, was indicted by the United States Attorney for the Southern District of New York. The micro-cap company, currently valued at just $76 million, has seen its stock price fall to $0.69, significantly below its 52-week high of $2.36.

The company, which provides liquidity solutions for alternative asset holders, stated it had parted ways with Heppner earlier this year after discovering what it described as "clear and credible evidence of his fraud on the Company and others."

Beneficient indicated it will continue pursuing potential claims against Heppner and his associated entities on behalf of shareholders. The company characterized the recent developments as "an important step toward ultimately closing this chapter" and creating opportunities to strengthen its foundation.

The technology-enabled platform, which operates through its online platform AltAccess, offers exit opportunities and capital solutions for alternative asset holders. Its subsidiary, Beneficient Fiduciary Financial, L.L.C., holds a charter under Kansas' Technology-Enabled Fiduciary Financial Institution Act and operates under regulatory oversight by the Office of the State Bank Commissioner.

No details were provided about the specific charges contained in the federal indictment against Heppner.

The statement was released as a press release by the company, which trades on the Nasdaq exchange.

In other recent news, Beneficient has made significant strides in addressing its Nasdaq compliance issues. The company regained compliance with two Nasdaq listing requirements, having filed its overdue Annual and Quarterly Reports, and met the $35 million minimum market value requirement. However, Beneficient still faces challenges with the $1.00 per share minimum bid price rule. In a notable development, Chairman Thomas O. Hicks and Interim CEO James G. Silk converted approximately $52.6 million of preferred units into common stock, resulting in the issuance of over 100 million shares. This move potentially aids the company in meeting Nasdaq listing requirements. Despite these efforts, Beneficient received a notice for non-compliance with the minimum stockholders’ equity requirement, reporting a negative $34.9 million as of March 31, 2025. The company also received an additional delisting notice due to a delayed filing of its quarterly report for the period ended June 30, 2025. Beneficient is taking steps to address these deficiencies but has not assured compliance.

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