Following reports of legal action initiation, Alpha Modus Holdings, Inc. (NASDAQ: AMOD) saw a sharp increase in share price. After a notable 34.75% increase during regular trading hours, when it closed at $3.49, AMOD stock increased 18.91% to $4.15 during Thursday’s extended trading session. The increased trend comes after Alpha Modus, Corp., a subsidiary of the company, announced that it had launched a lawsuit alleging patent infringement.
Patent Dispute Targets Industry Players
Alpha Modus said that it has filed lawsuits against Shelf Nine LLC and Wakefern Food Corporation. Wakefern oversees a network of 48 member companies that operate 365 shops in many states, including New Jersey, New York, and Connecticut, under well-known names like ShopRite, Price Rite Marketplace, and The Fresh Grocer.
The defendants are accused of breaching many AMOD patents in the action, which was filed on December 17, 2024, in the US District Court for the Eastern District of Texas. The goal of the cutting-edge retail marketing technology covered by these patents is to enhance consumers’ in-store experiences.
Notably, the advancements made by Alpha Modus allow for real-time analysis of customer behavior and product interactions, which enables companies to dynamically modify their marketing campaigns to sway decisions at crucial times.
Recent Developments Bolster AMOD’s Position
The legal action coincides with significant corporate milestones for Alpha Modus. Following a recent business combination with Insight Acquisition Corp., its shares started trading on the Nasdaq Global Market this Monday, under the ticker symbols “AMOD” and “AMODW.”
Strategic Financing Secured
In conjunction with the merger, Alpha Modus issued a secured convertible promissory note, yielding net proceeds of approximately $2.6 million. These funds are earmarked for transaction expenses and working capital. Additionally, the financing structure includes provisions for an additional $5 million infusion, enhancing the company’s financial flexibility for future operational needs.
Alpha Modus’ recent legal and financial maneuvers underscore its commitment to protecting intellectual property and fortifying its market position in the rapidly evolving retail technology landscape.
