Beneficient enters into private placement of $4M

Beneficient has entered into a securities purchase agreement with YA II PN, pursuant to which the Company agreed to issue and sell to Yorkville, convertible debentures in an aggregate principal amount of up to $4,000,000 and warrantsto purchase up to 1,325,382 shares of the Company’s Class A common stock, par value $0.001 per share, at an exercise price of $2.63. The Company issued $2,000,000 in aggregate principal amount of Convertible Debentures and Warrants to purchase up to 662,691 shares of Common Stock upon signing of the Securities Purchase Agreement, and the Company will issue the additional Convertible Debentures and Warrants on or before the first business day after the date the registration statement with the Securities and Exchange Commission registering the resale of the Common Stock underlying the Convertible Debentures and Warrants is declared effective by the SEC. The Convertible Debentures do not bear interest, subject to a potential increase to 18.0% per annum upon the occurrence of certain events of default, mature on February 6, 2025, and may be redeemed at a premium any time prior to maturity at the Company’s election, subject to conditions. The Convertible Debentures will be issued at an original issue discount of 10%. The Company intends to use proceeds from the transaction for general corporate purposes.