Plan Substantially Extends Cash Runway while Maintaining Growth Plan with Continued Investment in Software Platform and Marketing
SEATTLE, Oct. 09, 2024 (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 a comprehensive initiative designed to significantly improve its Net Income while maintaining its growth outlook. The Company plans to accomplish this through a reduction of its annual operational expenses by up to $9.9 million by March 31, 2025, along with a reduction in other expenses by up to $3.6 million.
Overall improvement in Net Income is expected to be approximately $13.5 million annually when fully implemented.
The strategic initiative includes a broad range of measures including strategic workforce adjustments, operational consolidation, and various other cost-saving actions. These measures are aimed at increasing efficiency and improving scalability while continuing to build Banzai's leadership position in the marketing technology industry. Specifically, Banzai expects to:
Implement Workforce Adjustments
Banzai has undertaken a strategic adjustment to reduce its staffing and independent contractor expenses by 27%, which will preserve the company's agility and innovation capacity. Affected employees will be supported with comprehensive severance packages and resources for career transition. The Company anticipates that the total cost to implement this plan will be $0.1 million.
Reduce Interest Expense
Banzai has restructured its long-term debt with Columbia Pacific Advisors ("CP BF") such that the long-term debt maturity is extended until February 19, 2027 from February 19, 2025, and 100% of interest expense is now Payable-in-Kind ("PIK") instead of payable in cash. This substantially reduces the Company's cash expenses. If fully converted to equity under the restructured note, ...
