Alpha Modus eliminates $41 million in mezzanine equity through capital restructuring

CHARLOTTE - Alpha Modus Holdings, Inc. (NASDAQ:AMOD), currently trading at $1.10 per share after experiencing a steep 90% decline over the past year according to InvestingPro data, announced Monday it has entered into an agreement for a capital restructuring that will eliminate approximately $41 million in mezzanine equity and remove all preferred stock from its balance sheet.

Under the agreement, The Alessi 2023 Irrevocable Trust will exchange approximately 4.3 million shares of Series C Preferred Stock for 40,111,940 shares of Class A common stock. The common shares will be subject to transfer restrictions through June 13, 2026, except for permitted transfers to affiliates.

William Alessi, Chief Executive Officer of Alpha Modus, said the transaction will reduce the company’s stockholders’ deficit and create "a simpler, stronger, and more investor-friendly capital structure."

The restructuring represents the final step in removing all preferred equity from the company’s balance sheet, according to the press release statement. By converting the preferred shares to common stock, the family trust is foregoing the downside price protection it previously held.

Alpha Modus, which develops AI-powered retail engagement technologies, stated the transaction is designed to align insider holdings with long-term common shareholder interests while enhancing transparency for current and prospective investors.

The company indicated the restructuring will improve its financial strength and flexibility as it pursues growth opportunities in the retail technology sector.

In other recent news, Alpha Modus Holdings, Inc. has been active with several strategic developments. The company recently announced it has secured exclusive nationwide licensing rights to deploy and monetize CashX kiosks and mobile applications across the United States, superseding all prior agreements with CashXAI, Inc. and CashX, LLC. Additionally, Alpha Modus has fully resolved and extinguished all variable rate debt from its DESPAC process, which was part of a strategic initiative to maintain capital structure integrity. In another significant move, Alpha Modus has entered into an exchange agreement with The Alessi 2023 Irrevocable Trust, converting 4,300,000 shares of Series C Preferred Stock into 40,111,940 shares of Class A common stock.

Furthermore, a family trust affiliated with the company’s CEO has committed to a $1.5 million financing arrangement to support growth initiatives, structured as a one-year promissory note with a conversion option. The company has also amended its Chief Financial Officer Rodney Sperry’s contract, increasing his compensation package to $144,000 annually, with half paid in cash and the remainder in shares of common stock. These developments highlight Alpha Modus Holdings’ focus on strategic growth and financial restructuring.

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