Alpha Modus CEO commits $3 million in debt financing to company

CORNELIUS, N.C. - Alpha Modus Holdings, Inc. (NASDAQ:AMOD), currently trading at $1.04 near its 52-week low of $1.01, announced Monday that CEO William Alessi has personally committed up to $3 million in debt financing to support the company's operations through the end of 2025. According to InvestingPro data, the company maintains a moderate debt level with a market capitalization of $14.38 million.

According to the press release, Alessi and his affiliated family trusts have also converted a block of preferred shares into common stock. The company stated this move aligns the CEO's interests with shareholders while avoiding third-party derivative financing options. This development comes as the stock trades at a P/E ratio of 10.73, suggesting relatively modest valuations despite recent market challenges.

"It's a clear signal: we are executing exactly as we said we would, and we're entering the most transformative revenue period in our company's history," Alessi said in the statement.

Alpha Modus, which describes itself as a retail AI and data monetization company, reported it has a pipeline of enterprise contracts expected to materialize in the second half of 2025. InvestingPro analysis indicates the company's overall financial health score is currently weak at 0.32, though the company anticipates reaching positive cash flow by year-end based on current implementation schedules.

The firm also stated it continues to monetize its patent portfolio through enforcement campaigns and has converted former legal adversaries into strategic partners, citing deals with VSBLTY and CashX.

Alpha Modus has applied to transfer its securities listing to the NASDAQ Capital Market and believes it will meet all applicable listing standards upon transfer, according to the announcement.

The company indicated it plans to maintain a lean operational model with the CEO's financial support while avoiding variable rate financing that could affect common share value.

This article is based on information provided in a company press release.

In other recent news, Alpha Modus Holdings, Inc. has been active with several strategic developments. The company announced a U.S. reseller agreement with Genmega, Inc. to expand its CashX platform through self-service kiosks, aiming to enhance its deployment across the U.S. Additionally, Alpha Modus has filed a patent infringement lawsuit against Cisco Systems, Inc., alleging unauthorized use of its Fibre Channel over Ethernet technology, seeking monetary damages for past usage. In a move to strengthen its leadership, Alpha Modus appointed fintech expert Tim Matthews as the new Head of Deployment Strategy to drive the expansion of its CashX smart kiosk network.

Moreover, Alpha Modus has made significant changes to its capital structure. The CEO's affiliated family trusts have converted Series C Preferred Stock into Class A Common Stock, expected to boost shareholder equity by approximately $31 million. This conversion is designed to decrease mezzanine equity and enhance financial flexibility, aligning the CEO's interests with common shareholders. The exchange also aims to improve the company's solvency metrics and potentially increase its appeal to institutional investors. These recent developments highlight Alpha Modus's strategic focus on growth and shareholder value.

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