Alpha Modus Agrees to Preferred Stock Exchange to Eliminate ~$41 Million in Mezzanine Equity, Strengthening Balance Sheet, and Fully Aligning Insider Interests

Core Viewpoint - Alpha Modus Holdings, Inc. has announced a transformative capital restructuring that will eliminate approximately $41 million in mezzanine equity, reduce stockholders' deficit, retire its last remaining preferred stock, and create a more sustainable and shareholder-aligned capital structure for growth [1][4]. Financial Restructuring - The transaction will remove all preferred equity from Alpha Modus' balance sheet, strengthening the financial foundation of the company [2]. - The Alessi 2023 Irrevocable Trust will exchange about 4.3 million shares of Series C Preferred Stock for 40,111,940 shares of Class A common stock [2]. Insider Alignment - The common shares issued will have a transfer restriction until June 13, 2026, ensuring long-term alignment between insiders and shareholders [3]. - The CEO emphasized that the exchange reflects insider confidence in the company's long-term strategy and simplifies the capital structure, making it more investor-friendly [4]. Transaction Benefits - The restructuring eliminates approximately $41 million in mezzanine equity, reduces stockholders' deficit, and enhances financial strength and flexibility [9]. - All remaining Series C Preferred Stock will be retired, aligning insider holdings with long-term common shareholder interests [9]. - The capital structure will be simplified, improving transparency for current and prospective investors [9].