Brand Engagement Network (NASDAQ: BNAI) Expands Global Footprint As It Secures $5.9M in Private Placement Financing And Enters $50M Standby Equity Purchase Agreement
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September 10, 2024 08:55 AM Eastern Daylight Time
Brand Engagement Network (NASDAQ: BNAI) (BEN), which creates artificial intelligence (AI) solutions for consumer engagement using human-like avatars as the interface to communicate with customers, hit multiple milestones recently
Early in September, the company entered into an agreement with IntelliTek Health. IntelliTek Health is a subsidiary of SmarTek21 and creates solutions for virtual assistants that interact with medical patients. It develops clinical and patient-facing tools and focuses exclusively on bringing AI-enabled productivity and services to the healthcare industry.
What The IntelliTek Deal Means For BEN
The agreement grants BEN a worldwide license to provide AI-driven solutions to support healthcare operations and optimize patient engagement throughout the United States, Australia, New Zealand, India and Europe.
Together, BEN and IntelliTek will offer a suite of AI-driven healthcare solutions to support and execute a broad range of tasks and operations that serve both medical professionals and patients. The agreement is intended to seek synergies in the strengths and solutions of both companies.
Brand Engagement Network will combine its Healthcare AI Assistant, Sandy – which serves as a direct interface resource for patients – with IntelliTek’s Personal Virtual Assistant (PVA). Sandy can help patients schedule appointments and obtain up-to-date information on prescription drugs. The IntelliTek PVA is part of a collaboration with Samsung Mobile Solutions and other leading U.S. and multinational telecommunications companies.
The deal also combines BEN’s AI technology with IntelliTek’s Clinical Virtual Assistant (CVA). The CVA is specifically designed for clinical teams looking to reduce their administrative burden. BEN reports that it has been shown to improve administrative efficiency by up to 50%, creating the opportunity to improve patient throughput by up to 17%.
Another solution rolled into the agreement is IntelliTek’s hands-free and voice-enabled Document Search AI. This device-agnostic tool can quickly and securely search for and retrieve specific medical information in real time from many different document formats sourced from a wide variety of different repositories.
Martyn Molnar, Chief Executive of Products at Intellitek Health, says that the “cooperation with BEN will enable both companies to offer a comprehensive suite of AI solutions for the healthcare industry, which is experiencing critical challenges surrounding workforce and resource availability.”
“We’re proud to have found a like-minded ally in IntelliTek, as we both strive to elevate patient experiences and healthcare professional productivity with innovative AI technology,” added Paul Chang, BEN’s CEO.
The two executives believe that together the platforms can serve as an end-to-end suite of solutions that offers continuous support to improve healthcare access and outcomes. They believe the collaboration will help each company broaden its customer base.
It is expected that the agreement will expand the reach of both companies’ solutions to a larger number of healthcare providers and patients and increase access to life-saving AI technology.
IntelliTek delivers highly curated products that automate over 2 billion interactions reaching more than 600 million global users, reports the company. The company and its parent, SmarTek21, ensure seamless connectivity of more than 100 pre-built integrations to support AI-driven solutions. Together they provide intelligent workflow automation across healthcare, telecommunications, aviation, finance and global eCommerce platforms.
The healthcare industry represents one of BEN’s primary target markets. The company’s full-stack platform includes front-end, middleware and back-end functionality through scalable, customizable solutions that it says are fully optimized to deliver superior customer experiences, productivity and performance.
New Financing Transactions
Prior to the IntelliTek Health announcement, BEN completed two investment transactions that provide the company with increased financial flexibility and access to capital to support its ongoing strategic growth initiatives. In August, BEN closed a $5.9 million private placement, which will provide funding to the company on a monthly basis through the first quarter of 2025.
The investment was supported by a group of BEN’s existing stockholders, who agreed to purchase nearly 1.2 million shares of common stock. The transaction was consummated at a price per share that was materially above the trading price of the company’s common stock at the time.
For each share purchased, investors received an additional share of common stock from certain other existing stockholders. In exchange for transferring those shares, certain transferring stockholders received an aggregate of 960,000 warrants to purchase shares of BEN’s common stock at $5.00 per share.
Concurrent with the private placement, BEN also entered into a Standby Equity Purchase Agreement (SEPA) with Yorkville Advisors. The SEPA provides BEN with the ability, but not the obligation, to cause Yorkville to purchase up to the aggregate amount of $50 million of BEN common stock.
The SEPA is intended to provide BEN with access to capital on an as-needed basis to fund its business plan as it seeks to execute its growth and revenue strategies. The SEPA cannot be used until a registration statement is declared effective by the Securities and Exchange Commission.
These two transactions are intended to help the company expand market validation and scale production of its human-like conversational AI assistants.
For more information about BEN, please visit www.beninc.ai.
Featured photo by National Cancer Institute on Unsplash.
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