Alt5 Sigma suspends CEO Peter Tassiopoulos, appoints Jonathan Hugh as acting chief

Alt5 Sigma Corp (NASDAQ:ALTS) announced Wednesday that its Board of Directors has suspended Chief Executive Officer Peter Tassiopoulos and removed him from his duties, effective immediately and with pay. The company stated that Jonathan Hugh has assumed the responsibilities of Acting Chief Executive Officer while continuing in his current role. The management shake-up comes as the company’s stock has declined nearly 20% in the past week, with InvestingPro data showing the shares trading 83% below their 52-week high of $10.95.

The changes were made by the Board on October 16. No additional details regarding the reasons for the suspension or the duration of the interim arrangement were provided in the company’s statement.

Alt5 Sigma, based in Las Vegas, is listed on the Nasdaq Stock Market under the ticker ALTS. The announcement was made in a press release statement as part of a regulatory filing with the Securities and Exchange Commission. Investors awaiting more clarity on the situation should note that the company’s next earnings report is scheduled for November 18.

In other recent news, Alt5 Sigma Corp announced that its shareholders approved an amendment to increase the number of authorized shares of common stock from 200 million to 2 billion. This decision was made during a reconvened Special Meeting of Stockholders. Additionally, stockholders approved the issuance of 119 million shares of common stock upon the exercise of pre-funded warrants and common stock purchase warrants held by World Liberty Financial, Inc. In a strategic move, MOG Digitech Holdings Limited invested $500,000 in Alt5 Sigma through a fund subscription, joining other institutional investors and crypto venture capital firms.

Alt5 Sigma also reported updates to its board and governance structure, including compensation terms for its Chief Financial Officer, Jonathan Hugh, with a base salary of $550,000 and a fully vested stock award. Furthermore, the company announced that incoming board observer Zak Folkman and incoming Chairman of the Board Zach Witkolf are scheduled to appear on CNBC’s “Squawk Box.” During this appearance, they may discuss Alt5 Sigma’s treasury strategy and efforts to expand in the cryptocurrency payment solutions sector. These developments highlight Alt5 Sigma’s ongoing strategic and financial initiatives.

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