Alpha Modus Holdings Completes $250 Million Bitcoin PIPE Transaction
Alpha Modus Holdings, a company that has been struggling to meet Nasdaq's listing standards, has completed a $250 million Bitcoin PIPE transaction. The deal involved the issuance of 51,621,560 shares of Class A Common Stock and warrants to purchase an additional 51,621,560 shares at an exercise price of $4.36 per share. The transaction was closed on September 30, with non-U.S. investors purchasing the securities for a total consideration of 3,170. According to the company, the Bitcoin delivered to its wholly-owned Singapore subsidiary, AMOD Tech Pte. Ltd., was valued at over $250 million based on a reference price of approximately $83,612.20 per Bitcoin on the day of closing.
The capital infusion is significant, relative to the company's current market capitalization of just $7.64 million. The company's stock had declined 97% over the past year to trade at $1.63 per share. As a result of the PIPE transaction, Alpha Modus Holdings now has stockholders' equity well above $200 million.
The company had previously received a notice from The Nasdaq Stock Market in April, indicating that it did not meet continued listing standards, including the minimum stockholders' equity requirement of $2.5 million under Nasdaq Listing Rule 5550(b)(1). The company submitted a compliance plan and was granted an extension by Nasdaq. With the completion of the PIPE transaction, Alpha Modus Holdings has regained compliance with Nasdaq's continued listing rules.