Alpha Modus faces Nasdaq delisting over market value

Alpha Modus Holdings, Inc. (NASDAQ:AMOD), a company specializing in patent ownership and leasing, received a notice from the Nasdaq Stock Market on Monday, indicating that it no longer meets the minimum market value requirement for continued listing. According to InvestingPro data, the company’s current market capitalization stands at just $30.76 million, well below the Nasdaq’s threshold of $50 million, following a steep 78.2% decline over the past six months.

The notice does not immediately affect the trading of Alpha Modus’s securities, but it does trigger the addition of an indicator alongside the company’s trading information on Nasdaq-related platforms. The company has been given a 180-day compliance period, until August 4, 2025, to regain compliance with the market value requirement. Compliance can be achieved if the company’s market value exceeds $50 million for at least ten consecutive business days within this timeframe.

If Alpha Modus fails to meet the Nasdaq’s requirement, its securities may be delisted. Such an event could have significant adverse implications for the company, including reduced liquidity and market price of its common stock, a potential decline in investor interest, challenges in raising equity financing, limitations on public capital market access, and difficulties in offering equity incentives to employees. InvestingPro analysis reveals concerning financial metrics, including a weak Financial Health Score and a current ratio of just 0.04, indicating significant challenges in meeting short-term obligations.

The company’s forward-looking statements indicate awareness of these risks and do not guarantee that it will be able to regain or maintain compliance with Nasdaq’s listing standards. These statements are subject to various factors, including financial reporting delays, additional listing rule violations, and the potential for delisting.

This news is based on a recent SEC filing by Alpha Modus Holdings, Inc. The company’s management has not provided any assurance or guarantee that the company will be able to address the issues raised by Nasdaq to avoid delisting. InvestingPro subscribers have access to 8 additional key insights about AMOD’s financial health and market performance, helping investors make more informed decisions during this critical period.

In other recent news, Alpha Modus Holdings has been actively involved in a series of significant developments. The technology company has initiated a patent infringement lawsuit against Walgreens Co., seeking to protect its patented retail technology that enhances consumer retail experiences. The company’s CEO, William Alessi, has indicated that damages due to the alleged infringement could exceed $500 million.

Alpha Modus has also restructured its debt payment schedule, extending the commencement date of required monthly payments from March to May 2025. The amendment pertains to a secured convertible promissory note issued to Streeterville Capital, LLC, and aims to manage the company’s cash flow and financial obligations more effectively.

In addition, Alpha Modus has received a notification from The Nasdaq Stock Market, indicating that it currently does not meet the minimum market value requirement for continued listing. The company has been given a 180-day grace period to regain compliance with Nasdaq’s listing rules.

Furthermore, Alpha Modus announced the appointment of Thomas Gallagher as their Chief Revenue Officer. Gallagher brings extensive experience in technology sector sales and leadership from his previous roles at Zones, DXC, and Capgemini NA.

Lastly, the company has secured a new patent titled "Methods for Personalized Marketing and Advertising," granted by the United States Patent and Trademark Office. This addition to their patent holdings signifies Alpha Modus’s commitment to innovation within the marketing and advertising space.

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