Banzai International announces a $2.2 million financing tranche to enhance liquidity and support growth initiatives.
Quiver AI Summary
Banzai International, Inc. has completed an $11 million debt facility with an institutional investor to enhance its financial liquidity and support growth through acquisitions. The initial financing tranche amounts to $2.2 million, maturing on June 30, 2026, with a 10% per annum interest rate, secured by the company's assets. The principal can be repaid in cash or converted into common shares at the holder's option at a specified price. Banzai plans to utilize the funds for working capital, acquisitions, and corporate purposes. Further details will be disclosed in a forthcoming SEC filing. The company specializes in AI-enabled marketing solutions, boasting over 90,000 customers, including well-known brands.
Potential Positives
- Completion of an $11.0 million debt facility enhances financial liquidity and provides operational flexibility for future growth.
- Initial financing tranche of $2.2 million allows for immediate support of acquisitions and ongoing operations.
- The ability to draw subsequent tranches under specific conditions signifies potential for continued financial support as needed.
- Company's established customer base of over 90,000, including notable brands, underscores its market presence and growth capability.
Potential Negatives
- Company is taking on significant debt with a 10% interest rate, which could strain financial resources and profitability.
- The fact that the initial financing tranche is only $2.2 million out of an $11.0 million facility may indicate limited immediate liquidity despite the larger commitment.
- Dependence on future tranches being drawn under specific conditions may hinder flexibility and operational agility if conditions are not met or waived.
FAQ
What is the amount of the initial financing tranche announced by Banzai?
Banzai announced an initial financing tranche of $2.2 million to support its operations and growth.
Who is the institutional investor for the debt facility?
The debt facility was completed with an institutional investor, although their identity has not been disclosed.
What are the uses of the proceeds from the financing?
Banzai intends to use the proceeds for working capital, acquisitions, and general corporate purposes to enhance future growth.
What is the interest rate on the Note?
The Note bears an interest rate of 10% per annum and matures on June 30, 2026.
Where can investors find more information about Banzai?
Investors can visit Banzai's investor relations website at https://ir.banzai.io for more information.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$BNZI Insider Trading Activity
$BNZI insiders have traded $BNZI stock on the open market 11 times in the past 6 months. Of those trades, 0 have been purchases and 11 have been sales.
Here’s a breakdown of recent trading of $BNZI stock by insiders over the last 6 months:
- JOSEPH P. DAVY (Chief Executive Officer) has made 0 purchases and 11 sales selling 50,000 shares for an estimated $48,940.
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Full Release
Initial Financing Tranche of $2.2 Million Provides Additional Operating Liquidity and Financial Flexibility to Support Acquisitions and Growth
SEATTLE, July 01, 2025 (GLOBE NEWSWIRE) -- Banzai International, Inc. (NASDAQ: BNZI) (“Banzai” or the “Company”), a leading marketing technology company that provides essential marketing and sales solutions, today announced the completion of an $11.0 million dollar debt facility with an institutional investor to support acquisitions and ongoing operations.
The financing includes an initial tranche of $2.2 million (the “Note”), which matures on June 30, 2026, bears interest at 10% per annum, and is secured by the Company’s assets. The principal amount of the Note is payable in cash or convertible in whole or in part into common shares at the holder’s discretion at 115% of the price of the common stock immediately preceding the Closing Date. The company has the right to draw subsequent tranches, provided that certain conditions are met or waived.
Banzai intends to use the net proceeds from the facility for working capital, acquisitions, and general corporate purposes to support its future growth.
Rodman & Renshaw LLC acted as Exclusive Financial Advisor to Banzai.
Further details on the Note will be disclosed in a Current Report on Form 8-K that the Company intends to file with the SEC by July 3, 2025.
This press release shall not constitute an offer to sell or a solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction.
About Banzai
Banzai is a marketing technology company that provides AI-enabled marketing and sales solutions for businesses of all sizes. On a mission to help their customers grow, Banzai enables companies of all sizes to target, engage, and measure both new and existing customers more effectively. Banzai had over 90,000 customers including RBC, Dell Technologies, New York Life, Thermo Fisher Scientific, Thinkific, and ActiveCampaign. Learn more at www.banzai.io . For investors, please visit https://ir.banzai.io .
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements often use words such as “believe,” “may,” “will,” “estimate,” “target,” “continue,” “anticipate,” “intend,” “expect,” “should,” “would,” “propose,” “plan,” “project,” “forecast,” “predict,” “potential,” “seek,” “future,” “outlook,” and similar variations and expressions. Forward-looking statements are those that do not relate strictly to historical or current facts. Examples of forward-looking statements may include, among others, statements regarding Banzai International, Inc.’s (the “Company’s”): future financial, business and operating performance and goals; annualized recurring revenue and customer retention; ongoing, future or ability to maintain or improve its financial position, cash flows, and liquidity and its expected financial needs; potential financing and ability to obtain financing; acquisition strategy and proposed acquisitions and, if completed, their potential success and financial contributions; strategy and strategic goals, including being able to capitalize on opportunities; expectations relating to the Company’s industry, outlook and market trends; total addressable market and serviceable addressable market and related projections; plans, strategies and expectations for retaining existing or acquiring new customers, increasing revenue and executing growth initiatives; and product areas of focus and additional products that may be sold in the future. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Forward-looking statements are not guarantees of future performance, and our actual results of operations, financial condition and liquidity and development of the industry in which the Company operates may differ materially from those made in or suggested by the forward-looking statements. Therefore, investors should not rely on any of these forward-looking statements. Factors that may cause actual results to differ materially include changes in the markets in which the Company operates, customer demand, the financial markets, economic, business and regulatory and other factors, such as the Company’s ability to execute on its strategy. More detailed information about risk factors can be found in the Company’s Annual Report on Form 10-K and the Company’s Quarterly Reports on Form 10-Q under the heading “Risk Factors,” and in other reports filed by the Company, including reports on Form 8-K. The Company does not undertake any duty to update forward-looking statements after the date of this press release.
Investor Relations
Chris Tyson
Executive Vice President
MZ Group - MZ North America
949-491-8235
[email protected]
www.mzgroup.us
Media
Nancy Norton
Chief Legal Officer, Banzai
[email protected]