Brand Engagement Network Inc. (BNAI) experienced a dramatic drop in its stock value during Thursday's extended trading session, with shares falling by almost 80%. This downturn comes after a period of significant growth for the company, which had seen its stock price climb over 2,000% in the preceding month. The firm, known for its enterprise AI solutions, had recently secured a notable partnership with Nelson Mandela University, valued at $2.05 million.
The company, Brand Engagement Network Inc., provides advanced artificial intelligence solutions. These solutions include text-based, voice-activated, and avatar-driven user experiences for businesses. Their recent collaboration with Nelson Mandela University in Africa, announced last week, involved a substantial $2.05 million agreement. This partnership was a key event following a period of intense market activity for BNAI shares. The stock's journey has been marked by high trading volumes and considerable price fluctuations. Notably, trading of Brand Engagement shares was temporarily halted on Wednesday due to sharp upward movements, which occurred in the absence of any specific corporate news.
The recent market downturn for BNAI shares on Thursday afternoon mirrored the previous volatility, occurring without a clear precipitating factor. Market data indicates that Brand Engagement Network has a relatively small float of fewer than 5 million shares, coupled with a high short interest, with nearly 30% of its shares being sold short. Furthermore, the stock has drawn attention from market observers, including being flagged on Edwin Dorsey’s StopNasdaqChinaFraud.com website as recently as Wednesday. These factors collectively contributed to the heightened sensitivity and rapid price changes observed in BNAI's trading.
Following the regular trading session on Thursday, Brand Engagement Network shares saw an additional 44% decline in after-hours trading, settling at $29.40. This compounded a 16% fall experienced during Thursday's standard trading hours. The significant depreciation reflects the culmination of various market pressures and the inherent volatility associated with stocks exhibiting similar trading characteristics and market structures.