DALLAS—Jeff Welday, the Global Head of Organizations and Distribution at Beneficient (NASDAQ:BENF), recently sold shares of the company's Class A Common Stock, as reported in a Form 4 filing with the Securities and Exchange Commission. The sale comes amid a challenging year for the company, whose stock has declined 98.45% year-to-date and currently trades at $0.60, near its 52-week low. The transactions, which occurred over three consecutive days, involved the sale of a total of 2,944 shares, generating approximately $2,055 for Welday.
The sales were executed at prices ranging from $0.67 to $0.74 per share. The first transaction took place on December 18, 2024, where 807 shares were sold at $0.74 each. The following day, Welday sold 896 shares at $0.70 per share. The final transaction occurred on December 20, with 1,241 shares sold at $0.67 each.
Following these transactions, Welday's holdings in Beneficient amount to 92,382 shares. The shares sold were to cover tax withholding obligations related to the vesting and settlement of restricted stock units.
In other recent news, Beneficient, a provider of liquidity solutions for alternative assets, is set to acquire Mercantile Bank (NASDAQ:MBWM) International Corp. in a deal valued at $1.5 million. This acquisition aims to broaden Beneficient's service offerings to a wider client base, including large institutional investors and international trading systems. The deal, subject to regulatory approval, is expected to close in the second quarter of 2025 and contribute to the company's fee-based revenue and cash flow.
Beneficient has also regained compliance with Nasdaq's requirements, ensuring its continued listing on the exchange. This development follows the company's reported growth in the second quarter of fiscal 2025, with a net income of $9.7 million, marking its second consecutive quarter of profitability. In the same period, Beneficient saw an improvement in permanent equity by $126 million and reduced operating expenses by 31.9%.
Adding to these developments, Beneficient appointed Karen J. Wendel (EPA:MWDP) to its Board of Directors. Wendel's experience in banking, technology mergers and acquisitions, cybersecurity, private equity, and corporate governance is anticipated to strengthen Beneficient's board-level decision-making. Despite a 55.9% decline in year-to-date net income and a 28% fall in year-to-date distributions compared to the previous year, Beneficient foresees growth in demand for liquidity in its target markets, potentially expanding from $60 billion to $100 billion over the next five years.
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