Brand Engagement Network Secures $2.050 Million AI Licensing Partnership in Africa

Brand Engagement Network (Nasdaq: BNAI) finalized an exclusive AI licensing partnership with Valio Technologies to commercialize BEN's Engagement Language Model (ELM™) and RAG technologies across Africa.

Rhea-AI Summary

Brand Engagement Network (Nasdaq: BNAI) finalized an exclusive AI licensing partnership with Valio Technologies to commercialize BEN's Engagement Language Model (ELM™) and RAG technologies across Africa. Key terms include a $2,050,000 preferred equity contribution to BEN, 25% common equity in the new South Africa–based entity plus one board seat, and a 35% revenue share across software, SaaS, services, and subscriptions. The deal grants an exclusive, perpetual Africa license with right of first refusal on any sale. A memorandum of understanding with Nelson Mandela University will pilot a governed, institution-approved AI mental health solution trained on approved content in a closed-loop environment.

Positive

• $2,050,000 preferred equity contribution to BEN
• 25% common equity in new South Africa entity
• One board seat in the newly formed entity
• Exclusive, perpetual Africa licensing rights granted
• Nelson Mandela University governed AI mental-health pilot

Negative

• 35% revenue share across software, SaaS, services, subscriptions
• Perpetual license with right of first refusal on any sale

Argus Jan 21 session

+41.46% close to close 2.9x rel. volume Open Argus

Details

News Market Reaction – BNAI

On Jan 21, the day this news came out, BNAI closed 41.46% above the previous close. That session’s volume was 2.9x the stock’s average daily volume.

Data tracked by StockTitan Argus for the Jan 21 session.

Key Figures

Preferred equity contribution: $2,050,000 Equity ownership: 25% common equity Revenue share: 35% of revenues +3 more

Preferred equity contribution

$2,050,000

South Africa–based entity contribution recognized as IP licensing revenue

Equity ownership

25% common equity

Ownership stake in newly formed Africa-focused entity

Revenue share

35% of revenues

Share across software, SaaS, services, and subscriptions

African population

1.4 billion people

Stated addressable population for governed AI adoption

Student anxiety prevalence

37.1%

Anxiety disorder rate among South African university students

Perceived stress prevalence

64.7%

University students across Africa reporting overall perceived stress

Historical Context

5 past events · Latest: Dec 29

5 events

1. Dec 29

   AI pharma project

   24h Move

   +108.8%

   Vendor agreement for custom AI solution and expected $250,000 development revenue.

2. Dec 22

   Debt reduction

   24h Move

   -8.7%

   Converted $1.25M debt and cut liabilities by $2.49M in Q4 2025.

3. Dec 18

   Debt conversion

   24h Move

   +12.4%

   Affiliate converted $504,684 debt to equity, reducing over $1.24M liabilities.

4. Dec 11

   Mexico AI health

   24h Move

   -3.7%

   Formation of Skye Salud to deploy sovereign AI healthcare platform in Mexico.

5. Dec 08

   Skye Salud launch

   24h Move

   +7.5%

   Announcement of Skye Salud partnership for augmented‑intelligence healthcare in Mexico.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

retrieval-augmented generation, post-traumatic stress disorder (PTSD), memorandum of understanding, right of first refusal

4 terms

retrieval-augmented generation technical

"leverages BEN's proprietary Engagement Language Model (ELM™) and Retrieval-Augmented Generation (RAG) technologies"

An AI method that combines a conversational language system with live access to external documents or databases, so the AI first fetches relevant facts and then uses them to form its answer. Think of it as an assistant that checks a file cabinet for source papers before replying, which helps reduce mistakes and reveal evidence. For investors it matters because it can produce more accurate, verifiable summaries of filings, news and research, speeding due diligence while still depending on the quality of the underlying data.

post-traumatic stress disorder (PTSD) medical

"with post-traumatic stress disorder (PTSD) affecting 21-24.5%2"

A mental health condition that can develop after exposure to a terrifying or life-threatening event, causing persistent distressing memories, heightened anxiety, sleep disturbance, and avoidance of reminders. For investors, PTSD matters because it drives demand for treatments, shapes regulatory and insurance coverage decisions for new therapies, and can influence workforce productivity and legal or disability costs—essentially acting as a market signal of medical need and potential revenue for related products.

memorandum of understanding financial

"The partnership includes a memorandum of understanding with Nelson Mandela University"

A memorandum of understanding (MOU) is a formal agreement between two or more parties that outlines their shared intentions and plans to work together. It acts like a handshake in writing, clarifying each side’s roles and expectations before any official contract is signed. For investors, an MOU signals that parties are serious about collaboration, which can influence future business opportunities and potential growth.

right of first refusal financial

"Perpetual term with right of first refusal on any sale"

A right of first refusal gives an existing shareholder or party the chance to buy an asset or shares before the owner can sell them to someone else. Think of it like being offered the first option to buy a house when the owner decides to sell; it matters to investors because it can limit who can acquire a stake, slow or block transactions, and affect the price and liquidity of an investment by restricting open-market sales or new buyers.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Featuring Institution-Approved Mental Health Pilot at Nelson Mandela University

WILMINGTON, Del. and JOHANNESBURG, Jan. 21, 2026 /PRNewswire/ -- Brand Engagement Network, Inc. (Nasdaq: BNAI) ("BEN"), a provider of secure, governed conversational AI solutions for regulated industries, today announced the finalization of a strategic partnership with Valio Technologies (Pty) Ltd ("Valio") to establish an exclusive AI licensing framework for government and commercial markets across Africa. The partnership includes a memorandum of understanding with Nelson Mandela University for a regulated, institution-approved pilot deployment of artificial intelligence designed to enhance student wellbeing.

Key Deal Terms

• $2,050,000 preferred equity contribution from a newly formed South Africa–based entity to BEN, recognized as intellectual property licensing revenue
• 25% common equity ownership in the newly formed entity and one board seat
• 35% revenue share across software, SaaS, services, and subscription offerings
• Exclusive license for government and private-sector markets across Africa
• Perpetual term with right of first refusal on any sale

The partnership leverages BEN's proprietary Engagement Language Model (ELM™) and Retrieval-Augmented Generation (RAG) technologies to deliver compliant, localized AI solutions aligned with growing data sovereignty and regulatory requirements across African markets.

Nelson Mandela University: Governed AI in Practice. As part of the Africa expansion, BEN and Valio have entered into a memorandum of understanding with Nelson Mandela University to implement a governance framework for an AI-powered mental health support initiative for students. The planned deployment is intended to operate within a secure, closed-loop environment and is trained exclusively on institution-approved content, without access to external public models or the open internet.

The initiative is designed to complement the University's existing counseling, wellness, and psychosocial services by expanding access to confidential, culturally relevant support while maintaining strict governance, institutional oversight, and appropriate escalation to human care when required. This comes at a critical time, as mental health challenges among university students are at alarming levels globally. In South Africa, prevalence rates for anxiety disorders reach up to 37.1% among students¹, with post-traumatic stress disorder (PTSD) affecting 21-24.5%², and overall perceived stress impacting 64.7% of university students across Africa³. Similarly, in the United States, 37% of college students report moderate to severe anxiety⁴, 44% experience depression symptoms⁵, and 60% meet criteria for at least one mental health issue⁶, underscoring the universal need for innovative, governed solutions like this pilot.

"In mental health applications, accuracy, governance, and trust are essential," said Lefentse Nokaneng, Chief Executive Officer of Valio Technologies and General Manager: Research at Brand South Africa, South Africa's official national branding agency⁷. "We selected BEN because its technology is built with control and accountability at its core, supporting institutions as they responsibly explore how AI can complement existing support services."

"This partnership reflects our strategy of pairing commercial scale with real-world, institution-approved deployments," said Tyler Luck, Chief Executive Officer and Co-Founder of BEN. "Africa, with its rapidly growing digital economy and more than 1.4 billion people, represents a significant opportunity for governed AI adoption across public and private sectors. By combining exclusive licensing, equity participation, and trusted institutional collaborations like Nelson Mandela University, we are building a scalable ecosystem aligned with regulatory, cultural, and societal priorities."

Valio Technologies is also the creator of eYakho Health, a digital health platform that aims to become one of Africa's largest connected health networks, linking patients, clinicians, pharmacies, diagnostic providers, and hospitals through a unified digital ecosystem accessible across the continent.

This announcement marks BEN's second major international AI licensing agreement — following the highly successful Skye LATAM partnership in Latin America — and underscores growing demand for compliant, sovereignty-aligned AI solutions across life sciences, healthcare, insurance, financial services, hospitality, retail, and automotive sectors.

About Brand Engagement Network, Inc. (Nasdaq: BNAI) 
Brand Engagement Network, Inc. ("BEN") is a provider of secure, enterprise-grade artificial intelligence solutions that enable natural conversations, workflow automation, and real-world execution across text, voice, and avatar-based experiences. Designed for regulated and high-impact industries, BEN delivers highly personalized, multimodal AI within secure, closed-loop environments—helping organizations modernize operations, improve decision-making, and enhance customer engagement. BEN's platform is powered by proprietary technology, including its Engagement Language Model (ELM™), and is built with governance, compliance, and reliability embedded by design. For more information, please visit www.brandengagementnetwork.com.

About Valio Technologies (Pty) Ltd 
Valio Technologies (Pty) Ltd is a Pan-African technology company focused on deploying enterprise-grade artificial intelligence, automation, and digital platforms tailored to developing and emerging markets. Valio partners with public- and private-sector organizations to deliver locally governed, scalable technology solutions across sectors including healthcare, government services, and enterprise modernization. Valio is also the creator of eYakho Health, a digital health platform that aims to become one of Africa's largest connected health networks. For more information, visit www.valiotechnologies.com.

About Nelson Mandela University 
Nelson Mandela University is a public comprehensive university in South Africa, named in honor of Nelson Rolihlahla Mandela, and recognized for its commitment to transformative education, research, and community engagement. For more information, visit www.mandela.ac.za.

Forward-Looking Statements: This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on current expectations and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially. Factors that may affect results are detailed in the Company's filings with the U.S. Securities and Exchange Commission. BEN undertakes no obligation to update any forward-looking statements.

Sources / Footnotes

¹ Anxiety disorders prevalence in South African students: https://www.ncbi.nlm.nih.gov/pmc/articles/PMC10607458/ (2023 study)
² PTSD prevalence in South African students: https://www.tandfonline.com/doi/full/10.1080/09540261.2021.1997893 (2021–2022 data)
³ Perceived stress across African university students: https://bmcpublichealth.biomedcentral.com/articles/10.1186/s12889-022-12921-2 (2022 meta-analysis)
⁴ US college student anxiety: https://healthymindsnetwork.org/hms/ (2023 Healthy Minds Study)
⁵ US college student depression: https://jedfoundation.org/mental-health-and-college/ (2023 data)
⁶ Overall mental health prevalence in US college students: https://www.nimh.nih.gov/health/statistics/mental-illness (NIMH, adjusted for college population 2023)
⁷ Brand South Africa leadership reference: https://www.sanews.gov.za/south-africa/south-africa-captivating-global-destination

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SOURCE Brand Engagement Network, Inc. (BEN)

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What are the financial terms of BNAI's Africa licensing partnership announced Jan 21, 2026?

BNAI will receive a $2,050,000 preferred equity contribution and 25% common equity in the new South Africa entity.

How much revenue share does Valio receive under the BNAI Africa agreement (BNAI)?

The agreement specifies a 35% revenue share across software, SaaS, services, and subscription offerings.

What geographic scope and term does the BNAI license cover for Africa?

The partnership grants an exclusive, perpetual license for government and private-sector markets across Africa with a right of first refusal on any sale.

What governance measures are included in the Nelson Mandela University pilot with BNAI (BNAI)?

The pilot will run in a secure, closed-loop environment trained only on institution-approved content with institutional oversight and human escalation protocols.

Does the BNAI announcement include equity or board representation?

Yes; BNAI will hold 25% common equity in the new entity and receive one board seat.

Which BEN technologies are being licensed in the Africa deal reported Jan 21, 2026?

The partnership leverages BEN's Engagement Language Model (ELM™) and Retrieval-Augmented Generation (RAG) technologies.