Alpha Modus Agrees to Preferred Stock Exchange to Eliminate ~$41 Million in Mezzanine Equity, Strengthening Balance Sheet, and Fully Aligning Insider Interests
Alpha Modus (NASDAQ: AMOD) has announced a significant capital restructuring agreement that will eliminate approximately $41 million in mezzanine equity from its balance sheet. The transaction involves The Alessi 2023 Irrevocable Trust exchanging about 4.3 million shares of Series C Preferred Stock for 40,111,940 shares of Class A common stock.
The newly issued common shares will be subject to transfer restrictions through June 13, 2026, except for permitted affiliate transfers. This restructuring represents the final step in removing all preferred equity from Alpha Modus' balance sheet, creating a cleaner capital structure and strengthening the company's financial foundation for future growth.
Alpha Modus (NASDAQ: AMOD) ha annunciato un importante accordo di ristrutturazione del capitale che eliminerà circa 41 milioni di dollari di equity mezzanino dal suo bilancio. L'operazione prevede che The Alessi 2023 Irrevocable Trust scambi circa 4,3 milioni di azioni di Serie C Preferred con 40.111.940 azioni ordinarie di Classe A.
Le nuove azioni ordinarie saranno soggette a restrizioni di trasferimento fino al 13 giugno 2026, salvo trasferimenti consentiti ad affiliati. Questa ristrutturazione rappresenta l'ultimo passo per rimuovere tutta l'equity preferenziale dal bilancio di Alpha Modus, creando una struttura patrimoniale più pulita e rafforzando le fondamenta finanziarie dell'azienda per la crescita futura.
Alpha Modus (NASDAQ: AMOD) ha anunciado un importante acuerdo de reestructuración de capital que eliminará aproximadamente 41 millones de dólares en capital mezzanine de su balance. La transacción implica que The Alessi 2023 Irrevocable Trust intercambie aproximadamente 4,3 millones de acciones de Series C Preferred por 40.111.940 acciones ordinarias Clase A.
Las nuevas acciones ordinarias estarán sujetas a restricciones de transferencia hasta el 13 de junio de 2026, salvo transferencias permitidas a afiliados. Esta reestructuración representa el paso final para eliminar todo el capital preferente del balance de Alpha Modus, creando una estructura de capital más limpia y fortaleciendo la base financiera de la compañía para su crecimiento futuro.
Alpha Modus (NASDAQ: AMOD)는 대차대조표에서 약 4,100만 달러의 메자닌 자본을 제거하는 중요한 자본 재구성 합의를 발표했습니다. 이번 거래는 The Alessi 2023 Irrevocable Trust가 약 430만 주의 시리즈 C 우선주를 40,111,940주 클래스 A 보통주로 교환하는 것을 포함합니다.
신규 발행된 보통주는 2026년 6월 13일까지(허용된 계열사 이전 제외) 양도 제한이 적용됩니다. 이 재구성은 Alpha Modus의 대차대조표에서 모든 우선주 지분을 제거하는 마지막 단계로, 보다 정돈된 자본 구조를 만들고 향후 성장을 위한 재무 기반을 강화합니다.
Alpha Modus (NASDAQ: AMOD) a annoncé un accord important de restructuration du capital qui supprimera environ 41 millions de dollars de capital mezzanine de son bilan. La transaction prévoit que The Alessi 2023 Irrevocable Trust échange environ 4,3 millions d'actions de Series C Preferred contre 40 111 940 actions ordinaires de Classe A.
Les nouvelles actions ordinaires seront soumises à des restrictions de transfert jusqu'au 13 juin 2026, à l'exception des transferts autorisés aux affiliés. Cette restructuration représente l'étape finale pour éliminer toutes les participations privilégiées du bilan d'Alpha Modus, créant une structure de capital plus claire et renforçant les assises financières de la société en vue de sa croissance future.
Alpha Modus (NASDAQ: AMOD) hat eine bedeutende Kapitalrestrukturierungsvereinbarung bekannt gegeben, die rund 41 Millionen US-Dollar an Mezzanine-Eigenkapital aus der Bilanz entfernen wird. Die Transaktion sieht vor, dass The Alessi 2023 Irrevocable Trust etwa 4,3 Millionen Aktien der Series C Preferred gegen 40.111.940 Aktien der Klasse A Stammaktien tauscht.
Die neu ausgegebenen Stammaktien unterliegen bis zum 13. Juni 2026 Übertragungsbeschränkungen, ausgenommen erlaubte Übertragungen an verbundene Unternehmen. Diese Restrukturierung stellt den letzten Schritt dar, um sämtliches Vorzugsaktienkapital aus der Bilanz von Alpha Modus zu entfernen, wodurch eine sauberere Kapitalstruktur entsteht und die finanzielle Basis des Unternehmens für zukünftiges Wachstum gestärkt wird.
- Elimination of ~$41 million in mezzanine equity from balance sheet
- Complete removal of all preferred stock, simplifying capital structure
- Significant reduction in stockholders' deficit
- Long-term insider alignment through transfer restrictions until June 2026
- Improved financial flexibility and transparency for investors
- Significant dilution through issuance of 40.1 million new common shares
Insights
Alpha Modus eliminates $41M in mezzanine equity via preferred-to-common conversion, significantly strengthening its balance sheet and simplifying capital structure.
Alpha Modus has executed a transformative capital restructuring that will have substantial positive implications for its financial position. The company is converting approximately
This transaction involves the Alessi family trust exchanging approximately 4.3 million shares of Series C Preferred Stock for 40,111,940 shares of Class A common stock. What makes this particularly significant is that the preferred shares carried downside price protection that will now be eliminated, putting the Alessi family's interests in complete alignment with common shareholders. The trust has also agreed to transfer restrictions through June 2026, demonstrating long-term commitment.
From a balance sheet perspective, this restructuring eliminates complex preferred equity that sat between debt and common equity in the capital structure. Mezzanine equity often carries liquidation preferences, dividend rights, and conversion features that can complicate a company's financial statements and potentially dilute common shareholders. By removing this layer, Alpha Modus has simplified its capital structure and improved transparency.
The conversion also suggests insider confidence, as the Alessi family is essentially giving up preferential rights and protections in exchange for common equity. This generally signals management's belief in future performance, as they're willing to stand on equal footing with public shareholders rather than maintaining preferential claims on company assets and cash flows.
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
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.
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.
“This is a decisive move that will not only eliminate ~
Transaction Benefits
- Eliminates ~
$41 million in mezzanine equity, reducing stockholders’ deficit and improving financial strength and flexibility. - Retires all remaining Series C Preferred Stock
- Aligns insider holdings with long-term common shareholder interests.
- Simplifies the Company’s capital structure, enhancing transparency for current and prospective investors.
For more information, visit: www.alphamodus.com
About Alpha Modus Holdings Inc.
Alpha Modus Holdings Inc. (NASDAQ: AMOD) is redefining the retail experience through its patented AI technologies, intelligent kiosks, and targeted consumer engagement tools. By integrating innovation with infrastructure, Alpha Modus is unlocking new monetization pathways for retailers and fintech providers alike.
For more information and to access Alpha Modus’ press room, visit: https://alphamodus.com/press-room/
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: ir@alphamodus.com
Website: www.alphamodus.com
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FAQ
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