Business
Alpha Modus Agrees to Preferred Stock Exchange to Eliminate ~$41 Million in Mezzanine Equity, Strengthening Balance Sheet, and Fully Aligning Insider Interests
CHARLOTTE, N.C., Aug. 18, 2025 (GLOBE NEWSWIRE) -- Alpha Modus Holdings, Inc. (NASDAQ: AMOD) (“Alpha Modus” or the “Company”), a leader in AI-powered retail engagement technologies, today announced that it has entered into an agreement for a transformative capital restructuring that will eliminate approximately $41 million in mezzanine equity, dramatically reduce the Company’s stockholders’ deficit, retire its last remaining preferred stock, and deliver a cleaner, shareholder-aligned capital str
About this update from Alpha Modus Holdings, Inc.
[{"type":"image","alt":"Alpha Modus Corp.","displaySize":"","headline":null,"caption":"Alpha Modus Corp.","className":"","disableSlideshowImg":false,"size":{"original":{"width":300,"height":99,"url":"https://media.zenfs.com/en/globenewswire.com/52812df3f395f6e45034a7ee488b928a"},"resized":{"url":"https://s.yimg.com/ny/api/res/1.2/kfwlK9rFK5guja5C7vD2BQ--/YXBwaWQ9aGlnaGxhbmRlcjt3PTQyMDtoPTEzOTtjZj13ZWJw/https://media.zenfs.com/en/globenewswire.com/52812df3f395f6e45034a7ee488b928a","width":300,"height":99}},"lazy":false},{"type":"text","content":"CHARLOTTE, N.C., Aug. 18, 2025 (GLOBE NEWSWIRE) -- Alpha Modus Holdings, Inc. (NASDAQ: AMOD) (“Alpha Modus” or the “Company”), a leader in AI-powered retail engagement technologies, today announced that it has entered into an agreement for a transformative capital restructuring that will eliminate approximately $41 million in mezzanine equity, dramatically reduce the Company’s stockholders’ deficit, retire its last remaining preferred stock, and deliver a cleaner, shareholder-aligned capital structure designed for sustainable growth.","length":539,"tagName":"p"},{"type":"text","content":"This transaction marks the final step in removing all preferred equity from Alpha Modus’ balance sheet and strengthening the Company’s financial foundation. The sole remaining preferred stockholder, 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.","length":355,"tagName":"p"},{"type":"text","content":"Under the terms of the agreement, the common shares that will be issued will be subject to a transfer restriction through June 13, 2026 (except for permitted transfers to affiliates), ensuring long-term insider alignment with shareholders.","length":239,"tagName":"p"},{"type":"text","content":"“This is a decisive move that will not only eliminate ~$41 million in mezzanine equity and reduce the Company’s stockholders’ deficit, but it also sends a strong signal of insider confidence in Alpha Modus’ long-term strategy,” said William Alessi, Chief Executive Officer of Alpha Modus. “By agreeing to this exchange, my family has agreed to forego the downside price protection my family trust previously had holding preferred stock. We have created a simpler, stronger, and more investor-friendly capital structure that positions us to fully...