Latest news with #capitalcommitment
Yahoo
25-06-2025
- Business
- Yahoo
Beneficient Enters into $1.91 Million GP Primary Capital Transaction
DALLAS, June 24, 2025 (GLOBE NEWSWIRE) -- Beneficient (NASDAQ: BENF) ('Ben' or the 'Company'), a technology-enabled platform providing exit opportunities and primary capital solutions and related trust and custody services to holders of alternative assets through its proprietary online platform AltAccess, today announced it has closed on the financing of a $1.91 million primary capital commitment for Mendoza Ventures Growth Fund III, LP ('Fund'), a fund managed by Mendoza Ventures Growth GP III, L.L.C., LP ('Fund Manager'), an asset manager focused on investing in technology companies where there is an opportunity for innovation, modernization, and disruption. The transaction represents Ben's third GP Primary transaction of the fiscal year and fourth since formally launching the program in late 2024. In exchange for an interest in the Fund, the Fund received approximately $1.91 million in stated value of shares of the Company's Resettable Convertible Preferred Stock (the 'Preferred Stock'), which is convertible at the election of the holder into shares of the Company's Class A common stock, subject to the terms and conditions of the transaction documents. As a result of the transaction, the collateral for the Company's ExAlt loan portfolio is expected to increase by approximately $1.91 million of interests in alternative assets. Concurrently, the Company also entered into a Preferred Liquidity Provider Program Agreement with the Fund, whereby the Company may facilitate ongoing liquidity solutions for the Fund and its limited partners. 'We are excited to continue recent momentum by completing another GP primary capital transaction, our second transaction with a fund managed by the Fund Manager,' said Beneficient management. 'We will continue to pursue additional opportunities that align with our strategic vision and growth objectives.' Beneficient's GP Primary Commitment Program is focused on providing primary capital solutions and financing anchor commitments to general partners during their fundraising efforts while immediately deploying capital into our equity. Through the program, Beneficient seeks to help satisfy the up to $330 billion of potential demand for primary commitments to meet fundraising needs. About Beneficient Beneficient (Nasdaq: BENF) – Ben, for short – is on a mission to democratize the global alternative asset investment market by providing traditionally underserved investors − mid-to-high net worth individuals, small-to-midsized institutions and General Partners seeking exit options, anchor commitments and valued-added services for their funds− with solutions that could help them unlock the value in their alternative assets. Ben's AltQuote® tool provides customers with a range of potential exit options within minutes, while customers can log on to the AltAccess® portal to explore opportunities and receive proposals in a secure online environment. Its subsidiary, Beneficient Fiduciary Financial, L.L.C., received its charter under the State of Kansas' Technology-Enabled Fiduciary Financial Institution (TEFFI) Act and is subject to regulatory oversight by the Office of the State Bank Commissioner. For more information, visit or follow us on LinkedIn. ContactsMatt Kreps: 214-597-8200, mkreps@ Wetherington: 214-284-1199, mwetherington@ Relations: investors@ Important Information and Where You Can Find ItThis press release may be deemed to be solicitation material in respect of a vote of stockholders to approve the issuance of the Company's Class A common stock upon conversion of the Preferred Stock (the 'Transactions'). In connection with the requisite stockholder approval, Ben will file with the Securities and Exchange Commission (the 'SEC') a preliminary proxy statement and a definitive proxy statement, which will be sent to the stockholders of Ben, seeking such approvals related to the Transactions. INVESTORS AND SECURITY HOLDERS OF BEN AND THEIR RESPECTIVE AFFILIATES ARE URGED TO READ, WHEN AVAILABLE, THE PROXY STATEMENT AND ANY OTHER RELEVANT DOCUMENTS FILED OR TO BE FILED WITH THE SEC IN CONNECTION WITH THE TRANSACTIONS, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THOSE DOCUMENTS, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT BEN AND THE TRANSACTIONS. Investors and security holders will be able to obtain a free copy of the proxy statement, as well as other relevant documents filed with the SEC containing information about Ben, without charge, at the SEC's website ( Copies of documents filed with the SEC by Ben can also be obtained, without charge, by directing a request to Investor Relations, Beneficient, 325 North St. Paul Street, Suite 4850, Dallas, Texas 75201, or email investors@ Participants in the Solicitation of Proxies in Connection with TransactionsBen and certain of its directors, executive officers and employees may be deemed to be participants in the solicitation of proxies in respect of the requisite stockholder approvals under the rules of the SEC. Information regarding Ben's directors and executive officers is available in its annual report on Form 10-K for the fiscal year ended March 31, 2024, which was filed with the SEC on July 9, 2024 and certain current reports on Form 8-K filed by Ben. Other information regarding the participants in the solicitation of proxies with respect to the Transactions and a description of their direct and indirect interests, by security holdings or otherwise, will be contained in the proxy statement and other relevant materials to be filed with the SEC. Free copies of these documents, when available, may be obtained as described in the preceding paragraph. Not an Offer of SecuritiesThe information in this communication is for informational purposes only and shall not constitute, or form a part of, an offer to sell or the solicitation of an offer to sell or the solicitation of an offer to buy any securities. The securities that are the subject of the Transactions have not been registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. Forward Looking StatementsExcept for the historical information contained herein, the matters set forth in this press release are forward-looking statements within the meaning of the 'safe harbor' provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, statements regarding the Transactions. The words 'anticipate,' "believe,' 'continue,' 'could,' 'estimate,' 'expect,' 'intends,' 'may,' 'might,' 'plan,' 'possible,' 'potential,' 'predict,' 'project,' 'should,' 'would' and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements are based on our management's beliefs, as well as assumptions made by, and information currently available to, them. Because such statements are based on expectations as to future financial and operating results and are not statements of fact, actual results may differ materially from those projected. Important factors that could cause actual results to differ materially from those expressed in the forward-looking statements include, among others: the ultimate outcome of the Transactions, including obtaining the requisite vote of securityholders, and the risks, uncertainties, and factors set forth under 'Risk Factors' in the Company's most recent Annual Report on Form 10-K and its subsequently filed Quarterly Reports on Form 10-Q. Forward-looking statements speak only as of the date they are made. The Company assumes no obligation to update forward-looking statements to reflect actual results, subsequent events, or circumstances or other changes affecting such statements except to the extent required by applicable law. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and, except as required by law, the Company assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise.
Globe and Mail
24-06-2025
- Business
- Globe and Mail
APLD: A Turnaround in Profitability or Mirage Behind Adjusted EBITDA?
Applied Digital 's APLD fiscal third-quarter 2025 results reflect a mixed bag of progress and persistent challenges, fueling a deeper debate over the company's ability to maintain consistent profitability. The 878% year-over-year jump in adjusted EBITDA (to $10 million) is indicative of its operational strength. However, the bottom-line GAAP reality tells a different story — a net loss of $36.1 million or 16 cents per share, which missed Street estimates by 5 cents. This widening gap between adjusted metrics and actual profitability has raised fresh concerns over the company's capital structure and earnings quality. Despite recording top-line revenue growth of 22% (totaling $52.9 million), APLD missed expectations by nearly $10 million. The quarter reflected operational hiccups, including technical issues transitioning its GPU clusters from single-tenant to a multi-tenant, on-demand model in the Cloud Services segment — an issue now resolved but responsible for revenue deceleration. Meanwhile, the Data Center Hosting segment experienced margin compression due to seasonal power cost increases. Strategically, Applied Digital made bold moves with financing partnerships — securing a $5 billion capital commitment from Macquarie and a $375 million loan from SMBC — strengthening its liquidity for the Ellendale campus buildout. However, the company also announced that it is reviewing strategic alternatives for its AI Cloud Services business, citing conflict with hyperscaler leasing prospects and potential REIT conversion benefits. With a rising debt load of $689.1 million and mounting interest expenses, investors are increasingly assessing whether Applied Digital's growth is self-sustaining or overly reliant on adjusted metrics and leveraged financing. As management eyes a potential sale of its AI business and continues to push aggressive campus expansion, the fundamental question looms: Is this a genuine turnaround or simply a mirage created by non-GAAP profitability optics? The answer may shape the next leg of APLD's market narrative. How Are APLD Rivals CORZ & MARA Performing? Core Scientific CORZ reported first-quarter 2025 revenues of $79.5 million, reflecting a sharp 55.6% year-over-year decline. This is indicative of the continued challenges in the crypto mining environment. The company posted an operating loss of $42.6 million, and adjusted EBITDA swung to a negative $6.1 million from $88 million in the prior-year period. While GAAP net income turned positive due to a $621.5 million non-cash gain related to warrants, core operations remained under pressure. The results highlight Core Scientific's transitional phase post-bankruptcy, as it works to stabilize operations amid fluctuating Bitcoin prices and elevated energy costs that continue to compress mining margins. Marathon Digital MARA reported first-quarter 2025 revenues of approximately $214 million, marking a 30% year-over-year increase. Despite strong top-line growth and a nearly doubled hashrate reaching 54.3 EH/s, the company posted a net loss of $533 million, or $1.55 per share. The loss was primarily due to a $552 million non-cash fair value adjustment on digital assets and derivative instruments. Adjusted EBITDA also turned negative at $484 million. The top and bottom-line figures missed analyst expectations, raising concerns about volatility in crypto asset valuations and its impact on Marathon's bottom line despite ongoing operational expansion. APLD's Price Performance, Valuation and Estimates Shares of APLD have surged 29.2% in the year-to-date period against the industry 's decline of 3.7%. From a valuation standpoint, Applied Digital trades at a forward price-to-sales ratio of 8.97X, above the industry average as well as its five-year median of 1.44X. APLD carries a Value Score of F. Image Source: Zacks Investment Research The Zacks Consensus Estimate for Applied Digitals' fiscal 2026 earnings implies a 73.6% rise year over year. The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Zacks Names #1 Semiconductor Stock It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom. With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028. See This Stock Now for Free >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Marathon Digital Holdings, Inc. (MARA): Free Stock Analysis Report Applied Digital Corporation (APLD): Free Stock Analysis Report Core Scientific, Inc. (CORZ): Free Stock Analysis Report
