Alpha Modus eliminates all variable rate debt from DESPAC process

CHARLOTTE - Alpha Modus Holdings Inc. (NASDAQ:AMOD), a micro-cap company with a market value of $25.58 million, announced Thursday that it has fully resolved and extinguished all variable rate debt associated with its DESPAC process, according to a company press release.

The AI-driven retail technology firm, whose stock has surged 43% in the past week to $1.85, described this development as the culmination of a six-month strategic initiative focused on preserving the integrity of its capital structure while avoiding dilutive derivative instruments. InvestingPro data shows the company operates with a moderate debt level and trades at an attractive P/E ratio of 10.7x.

"We’ve been very clear with the market—we will not jeopardize our vision or shareholder value through toxic financing," said William Alessi, CEO of Alpha Modus. "Today’s announcement reflects our steadfast commitment to that principle."

The company stated that it now operates with a streamlined capital structure with no third-party variable rate debt overhang, which it believes will enhance its appeal to institutional investors and strategic partners.

Alpha Modus Holdings, which develops AI technologies, intelligent kiosks, and consumer engagement tools for retailers and fintech providers, trades on the Nasdaq under the ticker AMOD.

The information in this article is based on a press release issued by Alpha Modus Holdings Inc.

In other recent news, Alpha Modus Holdings Inc. announced it has obtained exclusive nationwide licensing rights to deploy and monetize CashX kiosks and mobile applications across the United States. The agreement with CashXAI, Inc. and CashX, LLC positions Alpha Modus as the sole fulfillment provider for CashX’s existing and future U.S. contracts. Additionally, a family trust affiliated with Alpha Modus’s CEO has committed to a $1.5 million financing arrangement to support the company’s growth initiatives. This funding will be structured as a one-year promissory note with an option to convert the debt into common stock at $5 per share.

The company also amended the employment agreement with its Chief Financial Officer, increasing Rodney Sperry’s annual salary to $144,000, split evenly between cash and shares. Alpha Modus received approval to transfer its securities listing to the Nasdaq Capital Market, resolving prior listing deficiencies and bringing the company into compliance with Nasdaq’s requirements. Furthermore, Alpha Modus has been granted a U.S. patent for technology related to real-time shopper engagement and autonomous retail optimization, co-invented by Director Michael Garel and Jim Wang. These developments reflect the company’s ongoing initiatives and strategic adjustments.

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