Loan & DebtJul 7, 2026, 04:18 PM
Beneficient Amends SEPA, Secures $4M Convertible Note Advance
AI Summary
Beneficient amended its Standby Equity Purchase Agreement (SEPA) with Yorkville, reducing the potential equity sales from $250.0 million to $100.0 million. Concurrently, the company secured a $4.0 million advance through convertible promissory notes from Yorkville. The first tranche of $2.0 million, with a 5% original issue discount, resulted in gross proceeds of approximately $1.8 million and was received on July 1, 2026. These notes mature on June 30, 2027, bear 5.0% interest, and are convertible into Class A common stock with a variable conversion price and a floor of $0.89 per share.
Key Highlights
- Amended Standby Equity Purchase Agreement (SEPA) reduces potential equity sales to $100.0 million from $250.0 million.
- Secured $4.0 million advance via convertible promissory notes from Yorkville.
- First $2.0 million tranche issued June 30, 2026, yielding $1.8 million gross proceeds after 5% original issue discount.
- Promissory notes mature June 30, 2027, bearing 5.0% annual interest, potentially increasing to 18.0% on default.
- Conversion price is the lower of $5.6064 or 92.0% of the lowest daily VWAP over five trading days.
- Floor price for the variable conversion component is $0.89 per share.
- Maximum 4,719,101 shares issuable upon conversion of the promissory notes.
- Beneficial ownership upon conversion is limited to 4.99%.
Price Impact
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