Alpha Modus Holdings Finalizes Highly Dilutive Preferred Stock Conversion to CEO's Trust, Issuing 109.5M Shares

summarizeSummary

Alpha Modus Holdings has completed the conversion of preferred stock held by its CEO's family trust into 109.5 million common shares, a move that significantly dilutes existing shareholders as the company attempts to regain Nasdaq compliance.

check_boxKey Events

• Massive Share Issuance Completed

  On June 5, 2026, the company issued 109,588,265 shares of Class A common stock, bringing the total outstanding shares to 164,884,640. This transaction was previously disclosed in an April 10, 2026 8-K.

• Preferred Stock Converted to Common

  The newly issued common shares were exchanged for 3,870,000 shares of Series C Preferred Stock held by the family trust of CEO William Alessi.

• Extreme Dilution for Common Shareholders

  The issuance represents a nearly 200% increase in common shares relative to the prior outstanding count, resulting in substantial dilution for existing common stockholders.

• Aimed at Nasdaq Compliance

  The exchange was intended to increase the market value of listed securities to help regain compliance with Nasdaq's minimum market value of listed securities standard and reduce the stockholders' deficit.

auto_awesomeAnalysis

This filing confirms the execution of a previously announced highly dilutive transaction, where 109.5 million new shares of common stock were issued to the CEO's family trust. This represents a nearly 200% increase in outstanding shares relative to the prior share count, significantly diluting existing common shareholders. While the stated goal is to improve Nasdaq compliance and reduce the stockholders' deficit, the massive dilution underscores the company's severe financial distress and its precarious position near 52-week lows, especially ahead of a planned 1-for-40 reverse stock split.