Brand Engagement Network extends acquisition timeline

Brand Engagement Network Inc. (the "Company"), a Delaware corporation specializing in computer integrated systems design with a current market capitalization of $10.44 million, has entered into a second addendum to their Share Purchase and Transfer Agreement with Christian Unterseer, CUTV GmbH, and CUNEO AG (collectively, "Sellers"). According to InvestingPro analysis, the company appears undervalued at its current price of $0.25 per share. This addendum, dated May 26, 2025, extends the timeline for the Company to prepare and close the acquisition of Cataneo GmbH, a German limited liability company.

Previously, on October 29, 2024, the Company had agreed to acquire all outstanding equity interests of Cataneo GmbH for a total purchase price of $19.5 million, comprising $9 million in cash and 4.2 million shares of the Company’s common stock. The first addendum, Addendum I, was enacted on February 6, 2025, to give the parties additional preparation time. InvestingPro data reveals concerning liquidity metrics, with a current ratio of 0.09 indicating potential challenges in meeting short-term obligations.

The latest addendum, Addendum II, further amends the original agreement to allow for additional temporary suspensions of the Sellers’ right to withdraw until June 30, 2025. The Company has already paid $550,000 towards the cash consideration.

The acquisition is subject to customary adjustments and offsets as described in the original agreement. The completion is contingent on satisfying certain conditions, including obtaining financing to fund the purchase.

This transaction is expected to enhance the Company’s portfolio and capabilities in the integrated systems design sector. However, the Company cautions that forward-looking statements regarding the acquisition’s anticipated benefits and timing contain risks and uncertainties, and there is no assurance that expectations will be realized. InvestingPro analysis highlights significant challenges, with the stock down 74.64% year-to-date and multiple risk factors identified in the comprehensive Pro Research Report, available to subscribers along with 13 additional ProTips for informed decision-making.

The information in this article is based on a press release statement. The full text of the Addendum II, which outlines the terms of the agreement, is attached as Exhibit 2.1 to the Company’s Current Report on Form 8-K filed with the SEC.

In other recent news, Brand Engagement Network Inc. reported its Q4 2024 earnings, revealing a significant $13.5 million write-off due to terminated automotive reseller agreements. The company has not disclosed its revenue or earnings per share for the quarter. Brand Engagement Network is focusing on enhancing its AI capabilities and forming new partnerships, including plans for expansion in Mexico. The company is also preparing an S-1 filing with the SEC to secure additional funding, aiming for revenue growth to $2.5 million by FY2025. Furthermore, Brand Engagement Network announced its acquisition plans for Cataneo, a media technology company, as part of its strategy to expand AI capabilities into global media and advertising. The company has extended its partnership with Fibro and Grupo Siete to broaden its AI-powered engagement solutions in Latin America and Europe. Despite these strategic moves, the company faces challenges, including market volatility in the AI sector and the need for additional funding. Analysts from Maxim Group have shown interest in the company’s pilot programs and financial strategies, highlighting the cautious approach of businesses towards adopting AI technology.

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