Brand Engagement Network Inc (NASDAQ:BNAI), a company specializing in secure conversational artificial intelligence, has marked a substantial milestone in its international expansion efforts by entering into a strategic partnership with Valio Technologies. This alliance establishes an exclusive licensing framework for artificial intelligence applications spanning governmental and commercial markets across the African continent.
The agreement introduces immediate financial benefits alongside promising long-term revenue streams for Brand Engagement Network (BEN). As part of the transaction, Valio Technologies, headquartered in South Africa, is committing a $2.05 million preferred equity contribution to BEN. Recognized as intellectual property licensing revenue, this capital infusion strengthens BEN's financial position and validates the company's technology in a new regional market.
Importantly, the deal grants BEN a 25% ownership stake in this new South African entity. Beyond equity participation, BEN is also entitled to a 35% share of revenue derived from all software, software-as-a-service (SaaS), and subscription-based offerings under the partnership. This revenue-sharing agreement is structured for an indefinite term and includes a right of first refusal on any potential future sales, ensuring BEN maintains control and a significant interest in the venture's ongoing value.
An integral component of this expansion is the collaboration with Nelson Mandela University, where BEN will facilitate the deployment of a governed artificial intelligence pilot program. This project is designed to address student mental health by leveraging BEN's proprietary Engagement Language Model technology. The AI system offers secure, institution-approved support aimed at enhancing student well-being through innovative conversational AI capabilities.
This initiative follows BEN's previous successful international agreement with Skye LATAM, reflecting sustained global demand for artificial intelligence solutions that align with sovereignty principles. The African agreement signals BEN's strategic focus on establishing long-term partnerships that integrate their AI technology into critical social and commercial infrastructures worldwide.
The market has responded enthusiastically to these developments. Brand Engagement Network shares exhibited a significant surge on Wednesday, increasing by 45.04% to trade at $8.92 per share as of mid-afternoon trading. This sharp rise underscores investor confidence in the company's expansion strategy and financial prospects stemming from the new partnership.
As an AI platform provider, BEN's ability to secure exclusive licensing agreements in burgeoning markets like Africa positions the company to capitalize on expanding demand for AI-driven engagement solutions. The partnership with Valio Technologies and the deployment at Nelson Mandela University exemplify BEN's commitment to embedding its technology within sectors that prioritize security, compliance, and social impact.
Overall, the arrangement strengthens BEN's intellectual property portfolio and diversifies its revenue base through both equity ownership and sustained revenue sharing. The perpetual nature of the contract and inclusion of rights such as first refusal on future sales emphasize the strategic long-term value BEN anticipates deriving from this collaboration.