Alpha Modus Holdings, Inc. (NASDAQ:AMOD), a company specializing in patent ownership and leasing, has received a notification from The Nasdaq Stock Market indicating that it currently does not meet the minimum market value requirement for continued listing on the exchange.
The company’s stock, currently trading at $1.92, has experienced a significant decline of over 80% in the past six months, according to InvestingPro data. The notice, dated Monday, January 6, 2025, states that the company’s market value of publicly held shares (MVPHS) has fallen below the required threshold of $15 million.
Despite the warning, the company’s securities will continue to trade on Nasdaq, although an indicator will be shown alongside the company’s quotation information on NASDAQ.com and NASDAQTrader.com, as well as possibly on other third-party market data platforms. The company, incorporated in Delaware and headquartered in Cornelius, NC, has been given 180 days, until July 7, 2025, to regain compliance with Nasdaq’s listing rules.
To achieve compliance, Alpha Modus Holdings must maintain a MVPHS of at least $15 million for a minimum of ten consecutive business days within this 180-day grace period. Based on InvestingPro’s Fair Value analysis, the stock appears to be trading near its Fair Value, though investors should note the company’s concerning Altman Z-Score of -35.03, indicating potential financial distress. Get access to 12+ additional key metrics and ProTips with an InvestingPro subscription.
If the company fails to meet this requirement, its securities may be delisted from Nasdaq, which could have several negative repercussions. These include a potential decrease in the liquidity and market price of the company’s common stock, a reduction in the number of investors, limitations on the company’s ability to raise equity financing, and challenges in providing equity incentives to employees.
The news comes as the company, which also previously operated under the name Insight Acquisition Corp. /DE, is navigating the complexities of public market regulations. The company has made forward-looking statements regarding its expectations to regain compliance with Nasdaq’s listing rules. However, it has also acknowledged the risks associated with its current situation, including the possibility of failing to regain or maintain compliance and the risk of delisting.
This announcement is based on a press release statement and reflects the company’s current situation as per the regulatory filing with the SEC. Investors and stakeholders are advised to monitor the company’s progress in addressing this challenge. The stock’s beta of 0.28 indicates lower volatility compared to the broader market, though this should be viewed in context with the company’s overall weak financial health metrics available on InvestingPro.
In other recent news, Alpha Modus Holdings, Inc. has made several significant moves. The company has appointed Thomas Gallagher as their new Chief Revenue Officer, signaling a new phase of growth and leadership. Gallagher brings a wealth of experience from his previous roles at major tech companies and will receive an annual base salary of $175,000, along with performance-based bonuses and company common stock.
In addition to this appointment, Alpha Modus has been granted a new patent titled "Methods for Personalized Marketing and Advertising," potentially enhancing their intellectual property portfolio. The patent outlines innovative techniques for customizing marketing and advertising efforts, although specific plans for its utilization have not been disclosed.
Moreover, Alpha Modus has initiated a patent infringement lawsuit against Wakefern Food Corporation and Shelf Nine LLC, alleging that the defendants have infringed on multiple Alpha Modus patents related to retail marketing and advertising technologies. The company has previously engaged in similar patent infringement actions, continuing its partnership with Christopher E. Hanba of Dickinson Wright PLLC for this lawsuit.
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