AI firm Brand Engagement Network to go public via SPAC deal (updated)

Cohen & Company

07/09/2023 23:17

(New throughout, adds comment from executive)
    By Echo Wang
       NEW YORK, Sept 7 (Reuters) - Artificial intelligence
startup Brand Engagement Network (BEN) on Thursday agreed to go
public through a merger with a blank check acquisition company
in a deal valuing the combined company at $358 million.
    The deal with DHC Acquisition Corp  DHCA.O  will provide
Brand Engagement Network with about $40 million in gross
proceeds, the company said, confirming an earlier Reuters
report. 
    “BEN, because of its partnerships, doesn't have the same
capital requirements as many others SPAC companies had
previously.” Said Chris Gaertner, Co-CEO and CFO of DHC.  
    The popularity of ChatGPT has led to a flurry of investments
in AI-focused ventures and startups, even as the wider funding
environment remains challenging.
    Artificial intelligence and machine learning startups
globally have raised about $39.4 billion so far this year,
according to PitchBook.
    Headquartered in Jackson, Wyoming, Brand Engagement Network
is a provider of AI-powered chatbots and conversational AI
technology to companies in industries like automotive,
healthcare, and customer service. Brand Engagement Network's AI
offerings help companies with services, including data leakage
prevention and identity verification. 
    DHC Acquisition Corp, a special purpose acquisition company
(SPAC) which raised $309 million through its initial public
offering in 2021, cut the size of its offering to $47 million
earlier this year after securing an extension of its life from
shareholders.  
    SPACs are shell companies that raise money in an initial
public offering and put it in a trust for the purpose of merging
with a private company and taking it public. SPACs typically
have up to two years from the time they list their shares to
close a merger.
    Since investors are unaware of the target company ahead of
the IPO, SPACs often grant them the right to redeem their
initial investment as an incentive to put their money in the
trust.
    After the deal closes, the combined company will be named
BEN and will be listed on the Nasdaq under the ticker "BNAI". 
    Cohen & Company Capital Markets was the financial adviser on
the deal. 

 (Reporting by Echo Wang in New York; Editing by Anirban Sen,
Leslie Adler and David Gregorio)
 ((E.Wang@thomsonreuters.com; +13322191785; Reuters Messaging:
@deer_echo_))