Alpha Modus Holdings, Inc. To Strengthen Balance Sheet by $31 Million Through CEO-Led Capital Restructuring

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Alpha Modus Strengthens Balance Sheet By $31 Million

Removes approximately $31 million in preferred equity obligations from the mezzanine section of the balance sheet.

Removes approximately $31 million in preferred equity obligations from the mezzanine section of the balance sheet.

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CORNELIUS, N.C., June 04, 2025 (GLOBE NEWSWIRE) -- Alpha Modus Holdings, Inc. (NASDAQ: AMOD), an emerging leader in AI-driven retail technology, today announced a transformative improvement to its capital structure, driven by the planned exchange of Series C Preferred Stock into Class A Common Stock by CEO William Alessi's affiliated family trusts. The transaction should not only align the CEO family with common shareholders but should deliver a material $31 million boost to shareholder equity.

As a result of the transaction:

  • Mezzanine Equity to be reduced by $31,151,393

    Significantly reducing preferred equity overhang and long-term liabilities.

  • Common Stock to be increased by 26,515,152 shares and $2,651

    Reflecting the conversion and aligning economic interests with all shareholders.

  • Additional Paid-in Capital to be increased by $31,148,742

    Boosting the Company's permanent equity base and financial flexibility.

This reallocation of capital should remove approximately $31 million in preferred equity obligations from the mezzanine section of the balance sheet, which should enhance the Company's long-term solvency metrics, lower perceived risk, and improve its ability to access capital markets going forward.

"This isn't just a show of faith-it's a structural upgrade,” said CEO William Alessi. "We're realigning our capital stack in a way that strengthens Alpha Modus from the inside out. This is a powerful message to current and future investors: we're positioning ourselves for growth, not debt.”

Implications for Investors and the Company:

  • Improved Capital Structure: By reducing mezzanine equity and boosting common equity, the Company believes it will enhance its attractiveness to institutional investors.
  • Balance Sheet Optimization: The exchange should significantly de-leverage Alpha Modus' balance sheet, through decreasing shareholder deficit and increasing tangible shareholder equity.
  • Increased Investor Transparency: The reclassification from preferred to common stock should improve visibility and simplify equity calculations for analysts and investors.
  • Signal of Confidence: The move reinforces that insiders see current valuations as opportunistic and are betting on a long-term upward trend.

The financial figures cited above are estimates prior to quarter-end and will be finalized in the Company's upcoming quarterly filing.

Alpha Modus remains committed to its mission of driving shareholder value through patent enforcement, AI technology adoption, and strategic expansion in the retail innovation sector.

For more information and to access Alpha Modus' press room, visit: https://alphamodus.com/press-room/

About Alpha Modus Holdings, Inc.

Alpha Modus Holdings, Inc. (NASDAQ: AMOD) is pioneering the future of retail through advanced AI and real-time intelligence. With a defensible IP portfolio and a relentless focus on innovation, Alpha Modus enables smarter retail decisions and positions its shareholders at the forefront of the AI retail revolution.

Forward-Looking Statements

This press release includes "forward-looking statements” within the meaning of the "safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. Alpha Modus's actual results may differ from their expectations, estimates, and projections, and, consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as "expect,” "estimate,” "project,” "budget,” "forecast,” "anticipate,” "intend,” "plan,” "may,” "will,” "could,” "should,” "believes,” "predicts,” "potential,” "continue,” and similar expressions (or the negative versions of such words or expressions) are intended to identify such forward-looking statements, but are not the exclusive means of identifying these statements. These forward-looking statements include, without limitation, Alpha Modus's expectations with respect to future performance.

Alpha Modus cautions readers not to place undue reliance upon any forward-looking statements, which speak only as of the date made. Alpha Modus does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions, or circumstances on which any such statement is based.

Contact Information

Investor Relations

Alpha Modus Holdings, Inc.

Email: [email protected]

Website: www.alphamodus.com

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A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/5efe555b-ba30-4857-8d5c-0410b21901ea

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