Alpha Modus Holdings, Inc. CEO Affiliates To Exchange Preferred Stock for Common Stock, Demonstrating Confidence in Near Future Outlook

Core Viewpoint - Alpha Modus Holdings, Inc. announced a significant exchange of 3.2 million shares of Series C Preferred Stock for 26,079,868 shares of Class A Common Stock, indicating strong confidence in the company's future and reducing preferred equity [1][2][3] Group 1: Shareholder Impact - The exchange will eliminate key stock price downside protections associated with the preferred stock, benefiting common shareholders by reducing potential future dilution [3][8] - The Alessi family retains a portion of their preferred holdings, demonstrating alignment with common shareholders and a commitment to the company's long-term success [2][5] - The transaction enhances the market value of listed securities, aiding compliance with NASDAQ's continued listing requirements [4] Group 2: CEO's Perspective - CEO William Alessi emphasized that the exchange represents a $32 million stake in preferred stock, showcasing a belief that Alpha Modus is undervalued and that the path forward should reward long-term common shareholders [3][5] - By agreeing to a lock-up until June 2026, the Alessi family signals strong conviction in the company's growth prospects and a belief that current pricing does not reflect its underlying value [5] Group 3: Financial Implications - The removal of liquidation preferences and redemption rights on the exchanged preferred shares is expected to provide increased residual value to other common shareholders [8] - The exchange fixes the terms based on current market valuation, mitigating risks associated with future stock price declines [3][8]