Business
Alpha Modus Holdings, Inc. Executes Agreement to Reduce Preferred Overhang, Strengthen Balance Sheet, and Advance Nasdaq Compliance
Removes ~$37million in callable, potentially dilutive preferred securities and converts 90% of legacy preferred equity into common stock CHARLOTTE, N.C.,
About this update from Alpha Modus Holdings, Inc.
[{"type":"text","content":"Removes ~$37million in callable, potentially dilutive preferred securities and converts 90% of legacy preferred equity into common stock\nCHARLOTTE, N.C., April 13, 2026 (GLOBE NEWSWIRE) -- Alpha Modus Holdings, Inc. (“Alpha Modus”) (NASDAQ: AMOD) (“Alpha Modus” or the “Company”), a leader in AI-driven retail technology and financial services infrastructure, today announced the next step in its capital structure strategy, executing a deliberate transformation designed to simplify its balance sheet, reduce legacy preferred equity, and support its path toward full Nasdaq compliance. The Company has entered into an exchange agreement with the family trusts of its Chief Executive Officer, pursuant to which all remaining Series C Preferred Stock controlled by the CEO’s family, which constitutes 90% of the outstanding preferred stock, will be retired and converted into common equity, removing the vast majority of preferred stock from the Company’s current capital structure. This action represents a continuation of the Company’s previously executed balance sheet initiatives, including the prior elimination of approximately $41 million in mezzanine equity, significantly reducing the Company’s stockholders’ deficit and simplifying its financial profile. “This is not a financing event – it is a structural execution,” said William Alessi, Chief Executive Officer of Alpha Modus. “This was a deliberate, planned evolution of our capital structure. We are removing legacy preferred features and transitioning insider ownership entirely into common equity – the same class of stock held by our investors. There is no change in philosophy – it's execution. We succeed or fail alongside our shareholders.” A Planned Execution, Structural Transformation, Not Dilution This action is part of a pre-planned and coordinated, multi-step capital strategy to: Reduce preferred equity overhang.Remove structural impediments to valuation and institutional investment.Transition insider ownership entirely into common equity alongside shareholders.Improve key balance sheet metrics required under Nasdaq listing standards. Importantly, the common shares to be issued in the exchange reflect pre-existing economic rights embedded in the preferred securities that were negotiated prior to the closing of the business combination in 2024. This transaction does not introduce ne...