Beneficient Strikes Deal to Snag Mercantile: What It Means for You!
DALLAS, Dec. 5, 2024 — Get ready for some exciting news in the world of finance! Beneficient (NASDAQ: BENF), affectionately known as “Ben,” is taking a bold step forward by announcing its agreement to acquire Mercantile Bank International Corp., a Puerto Rico-based International Financial Entity (IFE), for a total purchase price of $1.5 million. This deal is set to be completed with approximately 2.1 million shares of Ben’s Class A common stock and cash!
“We are thrilled about the incredible growth potential this acquisition presents,” a representative from Beneficient stated. “Bringing Mercantile Bank into the fold means we can now offer a broader spectrum of custody and fee-based services. This move isn’t just about expanding our business; it’s about creating a powerhouse that can generate significant cash flow in the near future. Our mission is clear: to provide top-notch custody services that can potentially deliver better fee rates than traditional options, while also unlocking new international opportunities to benefit the market for alternative assets.”
So, what exactly is an International Financial Entity? IFEs are officially licensed and regulated by Puerto Rico’s Office of the Commissioner of Financial Institutions (OCIF). They are empowered to engage in a variety of financial services for non-residents around the globe, which includes everything from custody and clearing to payments and traditional banking services. This means Mercantile Bank is set to enhance Beneficient’s service offerings significantly, bolstering their capabilities in both traditional and digital financial products.
With this acquisition, Beneficient plans to extend its custody services from catering primarily to individual investors and small-to-midsized institutions to also encompass the needs of large institutional investors and third-party alternative trading systems. Imagine being able to provide services that include issuing depositary receipts, allowing holders of foreign investments to seamlessly access international capital markets. This is not just an expansion; it’s a game-changer with the potential to increase fee revenue dramatically!
Beneficient is optimistic that this new line of business will start generating custody and depositary receipt issuance revenue as early as 2025, which will be funneled back into funding their core operations and enhancing liquidity for alternative asset products. This acquisition is a crucial step in Beneficient’s strategic mission to broaden its alternative asset custody offerings and serve a wider array of institutional investors.
The finalization of this acquisition is dependent on customary closing conditions, including the all-important approval from the OCIF, with an anticipated completion date in the second quarter of 2025.
About Beneficient
Beneficient — or Ben, for short — is on a mission to revolutionize the global alternative asset investment landscape. By focusing on mid-to-high net worth individuals, small-to-midsized institutions, and General Partners seeking meaningful exit options, Ben is dedicated to unlocking the true value of alternative assets for traditionally underserved investors. Thanks to the innovative AltQuote™ tool, customers can explore a range of exit options in mere moments, all while securely navigating the AltAccess® portal for proposals and opportunities.
With its subsidiary, Beneficient Fiduciary Financial, L.L.C., chartered under Kansas’ Technology-Enabled Fiduciary Financial Institution (TEFFI) Act, Beneficient operates under rigorous regulatory oversight by the Office of the State Bank Commissioner.
For further details on this exciting development, visit www.trustben.com or connect with us on LinkedIn.
Contacts
Matt Kreps: 214-597-8200, [email protected]
Michael Wetherington: 214-284-1199, [email protected]
Investor Relations: [email protected]
Disclaimer and Cautionary Note Regarding Forward-Looking Statements
This announcement contains forward-looking statements that reflect our expectations about future events. Words like “anticipate,” “believe,” “could,” “estimate,” and similar terms are indicative of forward-looking statements. While we believe these projections are reasonable, they are subject to risks and uncertainties that could lead to actual outcomes differing significantly from those expressed. Risks include, but are not limited to, the successful execution and integration of the acquisition, market acceptance of new services, and unforeseen operational challenges. For a full list of risks and uncertainties, please refer to our filings with the Securities and Exchange Commission.
