Beneficient Enters into Agreement to Acquire Mercantile Bank International to Expand its Alternative Asset Custody Services

Core Viewpoint - Beneficient has announced an agreement to acquire Mercantile Bank International Corp for a total purchase price of $1.5 million, which will be paid in approximately 2.1 million shares of Class A common stock and cash [1] Group 1: Acquisition Details - The acquisition is expected to enhance Beneficient's service offerings by providing expanded custody and fee-based services, potentially generating additional cash flow in the near term [2] - The acquisition will allow Beneficient to address the needs of large institutional investors and third-party alternative trading systems, expanding its custody services [3] - The closing of the acquisition is subject to customary conditions, including approval from the Office of the Commissioner of Financial Institutions of Puerto Rico, and is anticipated to be completed in the second quarter of 2025 [5] Group 2: Strategic Objectives - The acquisition aims to democratize the market for illiquid alternative assets by offering higher fee rates for custody services compared to traditional offerings [2] - Beneficient plans to generate custody and depositary receipt issuance fee-based revenue starting in 2025, which will support ongoing operations and core liquidity product offerings [4] - The company is focused on expanding its alternative asset custody fee-based service offerings to third parties and institutional investors [4]