Source: Alex Lavoie
Brand Engagement Network Inc. Announces a 1-for-10 Reverse Stock Split
Brand Engagement Network Inc. (NASDAQ:BNAI), a company that specializes in enhancing brand engagement via innovative solutions, has announced a significant change in its stock structure. On December 12, 2025, BNAI will execute a 1-for-10 reverse stock split. This corporate action means that for every ten shares of BNAI common stock held, shareholders will receive one share. The primary aim of this decision is to consolidate the company’s shares, which could potentially enhance the stock’s market price.
Understanding the Implications of a Reverse Stock Split
In a reverse stock split, a company reduces the number of its outstanding shares in the market by merging multiple shares into a single share. Contrary to a traditional stock split, which increases the number of shares, a reverse stock split decreases the number of shares but increases the price per share. The move does not change the company’s overall market value, but it can make the stock more attractive to investors by increasing the individual share price.
The BNAI reverse stock split will not affect the overall number of authorized shares or impact the par value of BNAI’s common stock. Upon completion of the split, BNAI will carry on trading on the Nasdaq Capital Market, with trading on a split-adjusted basis commencing from the market open on December 12, 2025. The new CUSIP number for BNAI will be 104932 207, facilitating a seamless transition for investors.
BNAI Stock Performance and Market Capitalization
Prior to the announced reverse stock split, BNAI’s stock was priced at $2.65. This represents a decrease of 6.69% with a change of $0.19. The stock has seen fluctuations in its price, with a daily low of $2.58 and a high of $2.74. Over the past year, BNAI’s stock reached a high of $11.80 and a low of $2.31, which signifies significant volatility in its market performance.
The market capitalization of BNAI is approximately $11.96 million, with a trading volume of 210,791 shares on the NASDAQ exchange. The reverse stock split is a strategic move that may help stabilize the stock’s price and attract more investors to BNAI.
Handling Fractional Shares
One of the potential issues that can arise from a reverse stock split is the creation of fractional shares when a shareholder’s total number of shares is not a multiple of the split ratio. However, BNAI has clarified that no fractional shares will be issued in the reverse stock split. Instead, stockholders who would otherwise be entitled to a fractional share will receive a cash payment equivalent to the value of the fractional share amount. This ensures that no shareholder loses value as a result of the split.
Final Thoughts
In conclusion, BNAI’s reverse stock split is a strategic move aimed at consolidating the company’s shares and potentially increasing the stock’s market price. While this move does not change the company’s overall market value, it can make the stock more attractive to investors by raising its individual share price. This potentially could result in increased market stability and an uptick in investor interest, furthering BNAI’s growth in the long run.