Beneficient PRE 14A, filed Feb 29, 2024

Beneficient (BENF)

PRE 14A 2024-02-29 For: 2024-02-29

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Added on October 19, 2026

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QUESTIONS AND ANSWERS ABOUT THE SPECIAL MEETING		2
PROPOSAL 1: APPROVAL OF THE REVERSE STOCK SPLIT PROPOSAL		9
General		9
Purpose and Background for the Reverse Stock Split		10
Board Discretion to Effect the Reverse Stock Split		12
Risks Associated with the Reverse Stock Split		12
Potential Consequences if the Reverse Stock Split is Not Approved		13
Determination of the Reverse Stock Split Ratio		13
Effectiveness of the Reverse Stock Split		14
Effects of the Reverse Stock Split		14
Shares of Common Stock Issued and Outstanding		16
Procedure for Effecting the Reverse Stock Split		17
Effects of the Authorized Share Reduction		17
Fractional Shares		17
Accounting Treatment of the Reverse Stock Split		17
No Appraisal Rights		18
Anti-takeover Effects of the Reverse Stock Split		18
Interests of Certain Persons in the Reverse Stock Split		18
Certain U.S. Federal Income Tax Consequences of the Reverse Stock Split		18
Required Vote		19
Board Recommendation		19
PROPOSAL 2: TO APPROVE THE ADJOURNMENT OF THE SPECIAL MEETING, IF NECESSARY, TO SOLICIT ADDITIONAL PROXIES IF THERE ARE INSUFFICIENT VOTES AT THE TIME OF THE SPECIAL MEETING TO APPROVE THE REVERSE STOCK SPLIT		20
Background of and Reasons for the Adjournment Proposal		20
Required Vote		20
Board Recommendation		20
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT		21
REQUIREMENTS FOR ADVANCE NOTIFICATION OF NOMINATIONS AND STOCKHOLDER PROPOSALS		25
OTHER MATTERS		25
WHERE YOU CAN FIND ADDITIONAL INFORMATION		26


	Before Reverse Stock Split			Reverse Stock Split Ratio of 1 for 10		Reverse Stock Split Ratio of 1 for 50		Reverse Stock Split Ratio of 1 for 100
Number of Shares of Common Stock Authorized		1,520,000,000			152,000,000		30,400,000		15,200,000
Number of Shares of Common Stock Issued and Outstanding		277,065,101	⁽¹⁾		27,706,510		5,541,302		2,770,651
Number of Shares of Common Stock Reserved for Issuance Pursuant to Outstanding RSUs		52,962,964	⁽²⁾		5,296,296		1,059,259		529,630
Issuable under Outstanding Convertible Preferred Stock		11,142,857	⁽³⁾		1,114,286		222,857		11,439
Authorized but Unissued and Unreserved		1,178,829,078			117,882,908		23,576,582		11,788,291


	Class B Common Stock						Class A Common Stock
Name of Beneficial Owner(1)	Number of Shares of Class B Common Stock Beneficially Owned(2)			Percentage of Outstanding Class B Common Stock			Number of Shares of Class A Common Stock Beneficially Owned(2)			Percentage of Outstanding Class A Common Stock			Percentage of Total Voting Power of Class A and Class B Common Stock(3)
*Named Executive Officers and Directors*
Brad K. Heppner		17,719,483	(4)		92.6	%		1,095,205	(6)		*			39.7	%
James G. Silk		—			—			58,359	(7)		*			*
Derek L. Fletcher		—			—			191,738	(8)		*			*
Peter T. Cangany, Jr.		—			—			450,625	(9)		*			*
Richard W. Fisher		—			—			1,033,729	(10)		*			*
Thomas O. Hicks		1,322,208	(5)		6.9	%		93,420	(11)		*			3.0	%
Dennis P. Lockhart		—			—			50,625	(12)		*			*
Bruce W. Schnitzer		98,760			*			934,968	(13)		*			*
Emily B. Hill		—			—			12,500	(14)		*			*
All directors and executive officers of Beneficient as a group (13 individuals)		19,140,451			100	%		4,013,199			1.5	%		43.5	%


	Class B Common Stock				Class A Common Stock
Name of Beneficial Owner(1)	Number of Shares of Class B Common Stock Beneficially Owned(2)		Percentage of Outstanding Class B Common Stock		Number of Shares of Class A Common Stock Beneficially Owned(2)		Percentage of Outstanding Class A Common Stock			Percentage of Total Voting Power of Class A and Class B Common Stock(3)
*Other 5% Holders*
Hatteras Investment Partners, LP(15)		—		—		47,467,219		18.4	%		10.6	%
GWG Wind Down Trust(16)		—		—		169,654,521		65.8	%		37.8	%
The GRID Holding Co., LLC(17)		—		—		13,805,841		5.4	%		3.1	%


	As of December 31, 2023(1)
(Dollars in thousands)	Hypothetical Capital Account Balance		Capital Account Balance
BCH Equity Securities:
Class A Units held by Beneficient	$	—	$	350,965
Class S Ordinary Units		—		6,805
Class S Preferred Units		815		581
Preferred Series A Subclass 0		—		252,796
Preferred Series A Subclass 1		919,645		813,532

Subtotal BCH Equity	$	920,460	$	1,424,679

Beneficient PRE 14A, filed Feb 29, 2024

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		INTERNET – www.cstproxyvote.com Use the Internet to vote your proxy. Have your proxy card available when you access the above website. Follow the prompts to vote your shares.

		Vote at the Meeting – If you plan to attend the virtual online special meeting, you will need your 12 digit control number to vote electronically at the special meeting. To attend the special meeting, visit: https://www.cstproxy.com/beneficient/sm2024

		MAIL – Mark, sign and date your proxy card and return it in the postage-paid envelope provided.


PROXY	FOLD HERE • DO NOT SEPARATE • INSERT IN ENVELOPE PROVIDED	Please mark your votes like this
THE BOARD OF DIRECTORS RECOMMENDS A VOTE “FOR” ALL PROPOSALS.


Signature				Signature, if held jointly				Date		2024.