Banzai investor increases stake to 18.7% through warrant exercise

Banzai International Inc. (NASDAQ: BNZI) announced that an institutional investor exercised pre-funded warrants to increase its ownership stake to approximately 18.7% of the company's outstanding Class A common stock.

The investor exercised 1,176,628 pre-funded warrants on October 9 through a cashless transaction. The warrants had an exercise price of $0.001 per share and were originally issued as part of Banzai's acquisition of ClearDoc Inc. in December 2024.

As consideration for the ClearDoc acquisition, Banzai issued securities in a private placement to certain ClearDoc shareholders on December 18, 2024. The institutional investor received 49,996 shares of Class A common stock and 1,176,950 pre-funded warrants as part of that transaction.

The company stated that the investor has not sold any shares issued under the private placement. Following the warrant exercise, all pre-funded warrants issued in connection with the ClearDoc acquisition have been exercised.

"This warrant exercise by a key institutional shareholder demonstrates the continued confidence in our long-term strategy," said Joe Davy, founder and CEO of Banzai. "We continue to appreciate the long-term support from all stakeholders."

Banzai describes itself as a marketing technology company that provides AI-enabled marketing and sales solutions for businesses. The company reports having over 140,000 customers including RBC, Dell Technologies, New York Life, Thermo Fisher Scientific, Thinkific, and ActiveCampaign.

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