Alpha Modus CEO’s family trust commits $1.5 million financing

CHARLOTTE - Alpha Modus Holdings Inc. (NASDAQ:AMOD), currently trading at $1.24 per share with a market capitalization of $17.15 million, announced Tuesday that a family trust affiliated with its Chief Executive Officer has committed to a $1.5 million financing arrangement to support the company’s growth initiatives. According to InvestingPro data, the company’s shares have experienced significant pressure, falling nearly 89% over the past year.

The funding will be structured as a one-year promissory note with an option to convert the debt into common stock at $5 per share, a price significantly above current trading levels, according to the company’s press release statement. InvestingPro analysis indicates the company currently trades at a P/E ratio of 10.73, with a concerning current ratio of 0.13, suggesting potential liquidity challenges.

William Alessi, CEO of Alpha Modus, said the financing was initiated in June and represents "a strategic vote of confidence in our vision and execution." The company’s overall financial health score is rated as "Weak" by InvestingPro, which offers subscribers access to over 8 additional key insights about the company’s performance and outlook.

The AI-focused retail technology company indicated the funds would be allocated toward accelerating large-scale contract deployments, expanding integration of its artificial intelligence intellectual property, and driving licensing revenues through patent portfolio enforcement.

The financing arrangement is designed to be non-dilutive unless voluntarily converted at the fixed conversion price. According to the company, this structure was chosen to help maintain control of its capitalization table and avoid what it termed "predatory" variable-rate financings.

Alpha Modus describes itself as a technology company focused on AI-driven retail transformation, with products spanning retail media, digital signage, and smart kiosk technologies. The company stated it plans to execute major deployments in the second half of 2025.

In other recent news, Alpha Modus Holdings has made several notable announcements. The company disclosed an amended employment agreement with its CFO, Rodney Sperry, increasing his annual salary to $144,000, with half payable in cash and the remainder in company stock. Additionally, Alpha Modus has received approval to transfer its listing to the Nasdaq Capital Market, resolving previous listing deficiencies and aligning with its growth strategy. The company also announced the granting of a new U.S. patent for technology related to real-time shopper engagement and retail optimization, which supports ongoing deployment initiatives. In a strategic move, Alpha Modus deployed its first CashX Financial Services Kiosk in Louisville, marking the start of a broader national rollout targeting diaspora communities. CEO William Alessi has committed up to $3 million in debt financing to support operations, further aligning his interests with shareholders by converting preferred shares into common stock. The company continues to focus on scaling its enterprise rollout pipeline and monetizing its intellectual property portfolio through licensing and partnerships. Alpha Modus remains committed to avoiding derivative financing, aiming for positive cash flow by the end of 2025.

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