BEN Secures $3.5 Million Line of Credit

Rhea-AI Summary

Brand Engagement Network (NASDAQ: BNAI) has secured a $3.5 million revolving line of credit agreement with Corps Capital Advisors, LLC. The credit facility matures on December 5, 2025, carries a 10% annual interest rate, and can be prepaid without penalties. The company has not drawn any funds yet from this facility. According to CFO/COO Walid Khiari, this agreement enhances BEN's liquidity position as they focus on scaling operations and implementing strategic growth initiatives. The credit agreement includes standard financial and non-financial covenants, with default provisions for nonpayment and insolvency.

Positive

• Access to $3.5 million in flexible financing to support growth initiatives
• No prepayment penalties, offering financial flexibility
• Strengthened liquidity position for operational scaling

Negative

• Relatively high 10% annual interest rate
• Short-term maturity of only 6 months (December 2025)
• Potential dilution risk if covenants are breached

WILMINGTON, Del., June 10, 2025 (GLOBE NEWSWIRE) -- Brand Engagement Network Inc. (BEN) (NASDAQ: BNAI), an innovator in AI-driven customer engagement solutions, today announced it has entered into a $3.5 million line of credit agreement with Corps Capital Advisors, LLC, a Texas-based investment firm.

Under the terms of the agreement, BEN may draw up to $3.5 million in revolving credit until the facility’s maturity on December 5, 2025. The line of credit accrues interest at a fixed rate of 10.0% per annum and may be prepaid at any time without penalty. As of the date of this announcement, no amounts have been drawn under the facility.

“This flexible credit facility strengthens our liquidity as we continue scaling our operations and executing our long-term growth strategy,” said Walid Khiari, CFO and COO of Brand Engagement Network. “We appreciate the support from Corps Capital Advisors and the availability of additional financial resources as we pursue key strategic initiatives.”

The agreement includes customary terms and conditions, including events of default related to nonpayment, insolvency, and other standard financial and non-financial covenants. A copy of the agreement has been filed with the U.S. Securities and Exchange Commission.

About Brand Engagement Network (BEN)
Brand Engagement Network Inc. (NASDAQ: BNAI) innovates in AI-powered customer engagement, delivering safe, intelligent, and scalable solutions. Its proprietary Engagement Language Model (ELM™) and Retrieval-Augmented Generation (RAG) architecture enable highly personalized interactions supported by customers’ curated data in closed-loop environments. BEN develops AI-driven engagement solutions for the life sciences, automotive, and retail industries, featuring AI-powered avatars for outbound campaigns, inbound customer service, and real-time recommendations. With a global AI research and development team, BEN provides secure cloud-based or on-premises deployments, granting complete control of the technology stack and ensuring compliance with GDPR, CCPA, HIPAA, and SOC 2 Type 1 standards. The company holds 21 patents, with 28 pending, demonstrating its commitment to advancing AI-driven consumer engagement. For more information, visit www.beninc.ai.

Forward-Looking Statements
Certain statements in this communication are "forward-looking statements" within the meaning of federal securities laws. They are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect, among other things, BEN’s current expectations, assumptions, plans, strategies, and anticipated results. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks, and changes in circumstances that may differ materially from those contemplated by the forward-looking statements, which are neither statements of historical fact nor guarantees or assurances of future performance.

There are a number of risks, uncertainties and conditions that may cause BEN’s actual results to differ materially from those expressed or implied by these forward-looking statements, including but not limited to the risk factors described in Part I, Item 1A of Risk Factors in BEN’s Annual Report on Form 10-K for the year ended December 31, 2023 and the other risk factors identified from time to time in the BEN’s other filings with the Securities and Exchange Commission (the "SEC"). Filings with the SEC are available on the SEC's website at http://www.sec.gov.

Many of these circumstances are beyond BEN’s ability to control or predict. These forward-looking statements necessarily involve assumptions on BEN’s part. These forward-looking statements may include words such as "believe," "expect," "anticipate," "estimate," "intend," "plan," "project," "should," "may," "will," "might," "could," "would," or similar expressions. All forward-looking statements attributable to the Company or persons acting on BEN’s behalf are expressly qualified in their entirety by the cautionary statements that appear throughout this communication. Furthermore, undue reliance should not be placed on forward-looking statements, which are based on the information currently available to the Company and speak only as of the date they are made. BEN disclaims any intention or obligation to update or revise publicly any forward-looking statements.

Media Contact 
Amy Rouyer
P: 503-367-7596
E: amy@beninc.ai

Investor Relations
Susan Xu
P: 778-323-0959
E: sxu@allianceadvisors.com

FAQ

What is the size and terms of BNAI's new credit facility?

BNAI secured a $3.5 million revolving line of credit with Corps Capital Advisors, featuring a 10% annual interest rate and maturity on December 5, 2025, with no prepayment penalties.

How much has BNAI drawn from their new credit line?

As of the announcement date, BNAI has not drawn any amounts from the $3.5 million credit facility.

What is the interest rate on BNAI's new credit line?

The credit line carries a fixed interest rate of 10.0% per annum.

What will BNAI use the credit facility for?

The credit facility will be used to strengthen liquidity as the company scales operations and executes its long-term growth strategy.

When does BNAI's new credit facility mature?

The credit facility matures on December 5, 2025.