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CORNELIUS, N.C. - Alpha Modus Holdings, Inc. (NASDAQ:AMOD), a company at the forefront of AI-driven retail technology currently trading at $1.17 with a market capitalization of $16.2 million, has made a significant change to its financial structure. The CEO, William Alessi, through his affiliated family trusts, has converted a considerable portion of preferred stock into common stock. Specifically, 3.2 million shares of Series C Preferred Stock have been exchanged for 26,079,868 shares of Class A Common Stock, with a lock-up agreement in place until June 13, 2026. This move comes as the stock has experienced significant volatility, with InvestingPro data showing a 91% decline over the past six months.
This exchange is set to reduce the preferred equity stack and eliminate certain protections for the preferred stock, such as liquidation preferences and redemption rights. The move is seen as a demonstration of confidence in the company’s prospects and a greater alignment with the interests of common shareholders.
The decision to lock in the exchange terms at the current valuation is intended to protect common shareholders from potential dilution. It also supports the company’s compliance with NASDAQ’s market value of listed securities requirements, potentially enhancing its standing on the exchange.
Although not an official forecast, the CEO’s action might be interpreted as a signal of his belief in the company’s undervaluation and its future growth trajectory. This exchange of stock, valued at approximately $32 million, represents a significant personal financial commitment to Alpha Modus’s long-term success. According to InvestingPro analysis, the company trades at a P/E ratio of 10.7x and currently appears fairly valued. InvestingPro subscribers have access to 8 additional key insights about AMOD’s valuation and financial health.
Alpha Modus Holdings continues to innovate in the retail space with its AI and real-time intelligence solutions, maintaining a focus on driving smarter retail decisions. The company operates with a moderate debt level, with a total debt to capital ratio of 6%, though InvestingPro analysis indicates its overall financial health score is currently weak at 0.31 out of 1.0.
This news is based on a press release statement, and it reflects the company’s current strategic financial decisions without suggesting any broader industry impacts or trends.
In other recent news, Alpha Modus Holdings, Inc. has reached a confidential settlement in its patent litigation against The Kroger Co., concluding the dispute over its intelligent retail display systems. This resolution underscores Alpha Modus’s commitment to defending its intellectual property and enhancing shareholder value. Additionally, Alpha Modus has initiated a patent infringement lawsuit against Broadcom Inc., alleging infringement on patents related to Fibre Channel data transportation over Ethernet. The company has also filed a lawsuit against OptiSigns, Inc. for unauthorized use of its patented digital signage technologies. These legal actions are part of Alpha Modus’s broader strategy to protect its innovations and potentially increase long-term shareholder value. In another significant development, Alpha Modus announced a settlement involving Wakefern and Shelf Nine, with plans to negotiate a strategic partnership with VSBLTY Groupe Technologies Corp. This partnership aims to integrate Alpha Modus’s patented technology with VSBLTY’s data analytics software, enhancing their retail media network. These recent developments highlight Alpha Modus’s ongoing efforts to assert and monetize its intellectual property portfolio.
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