Brand Engagement Network receives extension from Nasdaq to regain compliance

Published 02/07/2025, 12:26
Brand Engagement Network receives extension from Nasdaq to regain compliance

Brand Engagement Network Inc. (NASDAQ:BNAI) announced Tuesday it has received a 180-day extension from the Nasdaq Stock Market LLC to regain compliance with the minimum bid price requirement for continued listing on the Nasdaq Capital Market. The extension gives the company until December 29, 2025, to have its common stock close at or above $1.00 per share for at least 10 consecutive business days. Currently trading at $0.40, the stock has declined 87.5% over the past year, according to InvestingPro data, and sits well below its 52-week high of $3.74.

According to a statement in the SEC filing, Brand Engagement Network was first notified by Nasdaq on December 30, 2024, that its stock had closed below $1.00 per share for 30 consecutive business days, putting the company out of compliance with Nasdaq Listing Rule 5550(a). The company was initially given until June 30, 2025, to regain compliance. InvestingPro analysis reveals concerning financial metrics, including a weak financial health score and a current ratio of 0.13, indicating potential liquidity challenges.

The extension granted by Nasdaq requires that Brand Engagement Network also maintain stockholders’ equity above $5 million in its financial statements for the quarter ending June 30, 2025. If the company does not meet this equity requirement, Nasdaq will withdraw the extension and issue a delisting determination. In such a case, the company would have the right to request a hearing before an independent Nasdaq Hearings Panel.

Brand Engagement Network stated it will continue to monitor the closing bid price of its shares and will consider available options to regain compliance, including a potential reverse stock split if approved by stockholders. With a market capitalization of just $17.32 million, the company faces significant challenges. For deeper insights into BNAI’s financial health and future prospects, investors can access comprehensive analysis through InvestingPro, which offers exclusive ProTips and detailed financial metrics for over 1,400 US stocks.

If the company does not regain compliance with the minimum bid price requirement by the end of the extension period, Nasdaq will provide notice that the company’s common stock will be subject to delisting. The company would then be entitled to appeal, though it would not be entitled to a stay of the suspension of trading.

This information is based on a press release statement included in the company’s recent SEC filing.

In other recent news, Brand Engagement Network Inc. reported its Q2 2025 earnings, highlighting a strategic focus on cost management and innovation in the AI sector. Despite reducing general and administrative expenses by nearly 50% year-over-year and securing a $3.5 million line of credit from Core Capital Partners (WA:CPAP), the company faces challenges in transitioning from pilot projects to revenue-generating contracts. The earnings call also revealed modest revenue from paid pilots, indicating that the company is still working to solidify its financial foundation. Additionally, Brand Engagement Network is preparing for the acquisition of Catanelle, a Germany-based media technology company, to enhance its ad tech capabilities. In terms of analyst activity, there were no specific upgrades or downgrades reported. The company also announced its 2025 Annual Meeting of Shareholders, which will be held virtually on July 22, 2025, to discuss the election of directors and other business matters. These developments reflect the company’s ongoing efforts to strengthen its position in the AI market amidst a competitive landscape.

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