Dallas-based financial services firm Beneficient Company has notified the Nasdaq Stock Market of its non-compliance with the exchange's audit committee requirements following recent resignations from its Board of Directors. The company, which operates under the trading symbols NASDAQ:BENF for its Class A common stock and NASDAQ:BENFW for its warrants, has until the earlier of its next annual stockholders' meeting or July 21, 2025, to address the vacancy on its audit committee and restore compliance.
The issue arose after Emily B. Hill announced her intention to resign from the board and the audit committee effective September 30, 2024. Dennis P. Lockhart also resigned from both the board and the audit committee with immediate effect on July 19, 2024. Neither resignation was due to disagreements with the company's practices or policies. Both Hill and Lockhart will continue to serve on the board of managers for Beneficient Fiduciary Financial, L.L.C., a subsidiary of the company.
Beneficient, which is still in its emerging growth phase, is actively seeking to appoint a new independent director who meets the Nasdaq's audit committee criteria. The company's stock will continue to be listed and traded on Nasdaq in the interim.
In other recent news, Dallas-based financial services firm Beneficient has been grappling with significant challenges. The company received a notification from the Nasdaq Stock Market about its non-compliance with the minimum stockholders' equity requirement for continued listing on the Nasdaq Capital Market. In response, Beneficient is actively exploring options to regain compliance within the stipulated 45-day period.
Simultaneously, Beneficient reported its Q4 fiscal 2024 results, which revealed an operating loss of $29.4 million for the quarter and $1.8 billion for the year. The company's net asset value (NAV) of alternative assets saw a decrease to $381.2 million, and revenues applicable to Ben Custody also declined to $5.6 million for the quarter.
Despite the hurdles, Beneficient launched ExchangeTrust with plans for up to $5 billion in fiduciary financings as part of its growth strategy.
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