Brand Engagement Network Inc. (BNAI) experienced a significant stock surge following the announcement of a strategic partnership with Valio Technologies, which involves a $2.05 million preferred equity investment through a South Africa-based entity.
This investment is classified as intellectual property licensing revenue, with BNAI acquiring a 25% equity stake in the new entity along with a single board seat. Furthermore, BNAI will receive 35% of the revenue generated from software, Software as a Service (SaaS), services, and subscription products, establishing a recurring revenue model linked to the entity”s performance.
The partnership grants BNAI exclusive artificial intelligence (AI) licensing rights for both government and commercial sectors across Africa under a perpetual agreement, which includes a right of first refusal for any future sales.
Additionally, BNAI has entered a memorandum of understanding with Nebraska University to launch a governed AI pilot program focused on student mental health and wellbeing. This initiative will function within a secure closed-loop environment, utilizing only institution-approved content, thereby addressing important sovereignty issues surrounding AI deployment in educational institutions.
This marks BNAI”s second international licensing deal, following the earlier establishment of the Skye LATAM partnership with a similar investment structure.
In terms of stock performance, BNAI shares are currently trading 273.2% above their 20-day simple moving average and 308.5% above their 100-day simple moving average. Over the past year, the stock has seen a remarkable gain of 197.47%. However, the relative strength index (RSI) at 77.72 indicates potential overbought conditions, suggesting a possible pullback in the near future.
Despite this, the Moving Average Convergence Divergence (MACD) indicator remains above its signal line, indicating ongoing bullish momentum. The combination of these technical indicators presents a mixed yet intriguing outlook.
According to Benzinga Edge, BNAI has received a momentum score of 96.25, categorizing it as bullish and indicating that the stock is outperforming the broader market. This partnership not only strengthens BNAI”s financial position through immediate capital infusion but also enhances its potential for equity growth and revenue generation from the burgeoning African market.
