Beneficient Chairman and Interim CEO Participate in Limited Conversion of Subsidiary Securities into Class A Common Stock

Core Viewpoint - Beneficient has announced a Limited Conversion of Preferred A-1 Unit Accounts into Class A common stock, demonstrating leadership's commitment to the company's long-term success and aligning interests with stockholders [1][4][5] Group 1: Limited Conversion Details - Thomas O. Hicks and James G. Silk converted approximately $48.0 million and $4.6 million of Preferred A-1 Unit Accounts into shares of Common Stock, resulting in the issuance of 92,485,639 and 8,808,649 shares respectively [1][4] - The conversion led to a voting and lock-up agreement, where Hicks and Silk will vote the Conversion Shares in favor of the Board's recommendations and the shares will be locked up until October 1, 2028 [3][4] Group 2: Compliance with Nasdaq Requirements - The company was notified by Nasdaq that it did not meet the minimum stockholders' equity requirement but is seeking to comply with the market value of listed securities requirement, which necessitates a market value of $35 million or greater [2] Group 3: Strategic Implications - The voluntary conversion signifies a commitment to the company's long-term success and aims to simplify its capital structure, while also deferring market dilution due to the lock-up agreement [4][5]