1. Beneficient announces a 1-for-8 reverse stock split effective December 15, 2025. 2. The reverse split aims to regain Nasdaq compliance for minimum bid pricing. 3. Shares will adjust from approximately 110 million to about 14 million post-split. 4. Beneficient continues to offer alternative asset investment services post-split. 5. Forward-looking statements suggest potential volatility in market response.
FAQ
Why Bullish?
While reverse splits often indicate prior struggles, they can attract institutional investors by increasing share price and reducing volatility. For instance, after a successful reverse split, companies like Citigroup in 2011 saw a boosted stock performance long-term.
How important is it?
The article discusses a significant corporate event (reverse stock split), which is likely to impact investor sentiment and stock value, resulting in measurable short-term market reactions.
Why Short Term?
The immediate market sentiment will likely reflect concerns about compliance surrounding the split, which could stabilize as market adjustments occur. Short-term volatility is expected as traders react to the split.
Beneficient Announces Reverse Stock Split to Regain Nasdaq Compliance
On December 11, 2025, Beneficient (Nasdaq: BENF), a technology-driven platform offering liquidity and trust services to alternative asset holders, announced a 1-for-8 reverse stock split. This strategic move aims to help the company comply with Nasdaq’s minimum bid price requirement. The reverse stock split will take effect on December 15, 2025, when trading will begin on a split-adjusted basis.
Details of the Reverse Stock Split
The reverse stock split will combine every eight shares of Beneficient’s Class A and Class B common stock into one share. The newly adjusted CUSIP number for Beneficient’s common stock will be 08178Q507. The stockholder vote approving this split occurred on December 1, 2025.
- Current shares of Class A Common Stock: 110,758,536
- Current shares of Class B Common Stock: 239,256
- Projected shares post-split for Class A: 13,844,817
- Projected shares post-split for Class B: 29,907
Implications of the Stock Split
The reverse stock split is designed to enhance BENF's stock price and align it with Nasdaq's listing standards. The overall number of authorized shares of both Class A and B common stock will also decrease significantly. The new authorization limits will be established at 625,000,000 for Class A and 31,250 for Class B. Notably, fractional shares will not be issued during this transition; shareholders entitled to a fraction will instead receive a full share.
Procedural Notes for Shareholders
Beneficient’s transfer agent, Continental Stock Transfer & Trust Co., will manage book-entry records for the company’s common stock. Existing registered stockholders holding their shares electronically will not need to take any actions to receive their post-split shares. Automatic adjustments will be made for those holding shares through brokers or banks.
About Beneficient
Beneficient (Nasdaq: BENF), also known as “Ben,” aims to democratize access to alternative asset investments. The firm serves a diverse clientele, including high-net-worth individuals and small to mid-sized institutions, striving to unlock value from their alternative assets. Beneficient is regulated under the Kansas Technology-Enabled Fiduciary Financial Institution (TEFFI) Act.
Forward-Looking Statements
This announcement contains forward-looking statements, as defined by the Private Securities Litigation Reform Act of 1995. These statements involve expectations regarding the Reverse Stock Split and its impact on BENF’s compliance with Nasdaq requirements. Actual results may differ due to various factors, including market conditions and internal assessments. The company does not undertake any obligation to update these statements post their publication date.