Brand Engagement Network Inc. ( BNAI ) shares are racing higher Wednesday after the company announced a $4.95 million private placement. 

The Details:

The company said the investment, backed by a group of existing BEN shareholders, includes a combination of stock and warrants to purchase common stock and was priced at $2.50 per share. Certain members of the investor group have also agreed to provide BEN with additional capital through the exercise of their warrants if the company is unable to raise an additional $3.25 million by October 31. 

Brand Engagement Network ( BNAI ) also announced the concurrent appointment of Paul Chang to Co-CEO.

“The moves we are announcing today represent a powerful vote of confidence in our strategy from our Board, executive team, and our existing investors,” said the Chairman of BEN’s Board of Directors, Chris Gaertner. “This investment will allow BEN to continue to fund its business plan as it seeks to execute on its growth and revenue strategies.” 

Brand Engagement Network ( BNAI ) shares are moving on heavy trading volume following the announcement. According to data from Benzinga Pro, more than 86 million shares have already been traded in the session, compared to the stock’s 100-day average of less than 110,000 shares.

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Is BNAI A Good Stock To Buy?

An investor can make a few decisions when deciding whether a stock is a good buy. In addition to valuation metrics and price action which you can find on Benzinga's quote pages – like Brand Engagement Network ( BNAI )‘s page for example – there are factors like whether or not a company pays a dividend or buys a large portion of its stock each quarter.

These are known as capital allocation programs. Brand Engagement Network ( BNAI ) does not pay a dividend, but obviously has a few ways it can return value to shareholders. Feel free to search Benzinga's dividend calendar for the next company that is due to pay a dividend and determine what kind of yield you can earn for holding a share of the company.

For example, if you're looking to earn an annualized return of 11.35%, you'll need to buy a share of Nordic American Tankers by June 28, 2024. Once done, you can expect to receive a nominal payout of $0.12 on July 18, 2024.

Buyback programs are obviously different and highly variable. A company can approve a buyback program and purchase shares as it sees fit over the course of time in which the buyback was authorized. Looking through the latest news on Brand Engagement Network ( BNAI ) will often yield whether or not the company has approved a buyback program recently. Buyback programs usually serve as a support for share prices, serving as a backstop for demand.

BNAI Price Action: According to Benzinga Pro, Brand Engagement Network ( BNAI ) shares are up 99% at $2.53 at the time of publication Wednesday.

Image: Gerd Altmann from Pixabay