Item 1.01Item 1.01 - Entry into Material Agreement
Item
1.01. Entry into a Material Definitive Agreement.
On
October 21, 2026, Alpha Modus Holdings, Inc. (the “ Company ”) entered into a Securities Purchase Agreement (the
“ Purchase Agreement ”) with an institutional investor pursuant to which the Company agreed to sell and issue
in a registered direct offering (the “ Offering ”) an aggregate of 6,304,348 shares (the “ Shares ”)
of its Class A common stock, par value $0.0001 per share (the “ Common Stock ”). The offering price per Share
is $1.15, for aggregate gross proceeds to the Company from the Offering of approximately $7.25 million, before deducting the Placement
Agent’s (as defined below) fees and offering expenses payable by the Company. The Company intends to use the net proceeds from
the Offering for the payment of debt, as well as working capital and general corporate purposes. The closing of the Offering is expected
to occur on or about October 22, 2026, subject to the satisfaction of customary closing conditions.
Pursuant
to the Purchase Agreement, the Company has agreed that, subject to certain exceptions (i) until thirty (30) days after the closing of
the Offering, neither it nor any of its subsidiaries shall (a) issue, enter into any agreement to issue or announce the issuance or proposed
issuance of any Common Stock or Common Stock Equivalents (as defined in the Purchase Agreement) or (b) file any registration statement
or any amendment or supplement thereto, and (ii) until one (1) year after the Closing Date, it shall not enter into a Variable Rate Transaction
(as defined in the Purchase Agreement).
The
Purchase Agreement contains customary representations and warranties, agreements and obligations, conditions to closing and termination
provisions.
The
representations, warranties and covenants contained in the Purchase Agreement were made only for purposes of such agreement and as of
specific dates, were solely for the benefit of the parties to the Purchase Agreement and may be subject to limitations agreed upon by
the contracting parties. Accordingly, the Purchase Agreement is incorporated herein by reference only to provide investors with information
regarding the terms of the Purchase Agreement, and not to provide investors with any other factual information regarding the Company
or its business, and should be read in conjunction with the disclosures in the Company’s periodic reports and other filings with
the Securities and Exchange Commission (the “ SEC ”).
In
connection with the Offering, the Company previously entered into an Engagement Agreement, dated as of December 1, 2025, with H.C. Wainwright
& Co., LLC (the “ Placement Agent ”), pursuant to which the Placement Agent agreed to serve as the exclusive
placement agent for the issuance and sale of securities of the Company during the term of the agreement, including pursuant to the Purchase
Agreement. As compensation for such services in connection with the Purchase Agreement, the Company agreed to pay the Placement Agent
a cash fee equal to 7.0% of the aggregate gross proceeds from the Offering and issue to the Placement Agent, or its designees, warrants
to purchase up to 441,304 shares of Common Stock (the “ Placement Agent Warrants ”) (equal to 7.0% of the number
of Shares issued in the Offering) at the closing of the Offering. The Placement Agent Warrants have a term of five years from the commencement
of sales of the Offering and have an exercise price of $1.4375 per share. The Company also agreed to reimburse the Placement Agent for
legal and other expenses incurred by it in connection with the offering in an aggregate amount of up to $75,000 and $15,950 for the Placement
Agent’s clearing expenses.
The
Shares, the Placement Agent Warrants and the shares of Common Stock issuable upon exercise of the Placement Agent Warrants (the “ Placement
Agent Warrant Shares ”) were offered and sold by the Company pursuant to an effective shelf registration statement on Form
S-3 (File No. 333-292606), which was originally filed with the SEC on January 7, 2026, and was declared effective on January 16, 2026,
a base prospectus forming a part of the effective registration statement dated January 16, 2026, and a prospectus supplement dated October
21, 2026.
The
foregoing summaries of the Purchase Agreement and the Placement Agent Warrants do not purport to be complete and are subject to, and
qualified in their entirety by, copies of the forms of such documents attached as Exhibits 10.1 and 4.1, respectively, to this Current
Report on Form 8-K, which are incorporated herein by reference.
A
copy of the opinion of Brunson Chandler & Jones, PLLC, counsel to the Company, relating to the validity of the Shares, the Placement
Agent Warrants, and the Placement Agent Warrant Shares is attached as Exhibit 5.1 to this Current Report on Form 8-K.
Cautionary
Note Regarding Forward-Looking Statements
This
Current Report on Form 8-K contains “forward-looking statements” within the meaning of the Private Securities Litigation
Reform Act of 1995, as amended, Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section
21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Forward-looking statements include, without
limitation, statements regarding the completion of the Offering, the satisfaction of customary closing conditions related to the Offering
and the amount and the intended use of the net proceeds from the Offering. In some cases, you can identify forward-looking statements
because they contain words such as “may,” “will,” “should,” “expects,” “intends,”
“plans,” “anticipates,” “believes,” “estimates,” “projects,” “potential,”
or “continue,” or the negative of these terms or other comparable terminology. The absence of these words does not mean that
a statement is not forward-looking. Such forward-looking statements are necessarily based upon estimates and assumptions that, while
considered reasonable by the Company and its management, are inherently uncertain.
Actual
results may differ materially from those indicated by these forward-looking statements as a result of various risks and uncertainties,
including, without limitation: the risk that the closing of the Offering is delayed or not completed at all; the risk that the net proceeds
from the Offering may be deployed differently than currently anticipated; adverse market or capital-markets conditions; dilution to existing
stockholders from the share issuance and the issuance of common stock equivalents; risks associated with the planned launch and deployment
of the Company’s quantum-ready graphics processing unit edge network, including timing, cost, partner performance, customer adoption
and integration of graphics processing unit infrastructure into existing operations; competitive risk in the artificial intelligence
infrastructure and high-performance computing markets; changes in economic, market or regulatory conditions, including evolving regulatory
frameworks applicable to securities offerings, artificial intelligence infrastructure and digital assets; risks associated with technological
development and integration; and other risks and uncertainties as more fully described in the Company’s filings with the SEC, including
its Annual Report on Form 10-K for the year ended December 31, 2025, and other filings the Company makes from time to time with the SEC,
which are available on the SEC’s website at www.sec.gov.
Readers
are cautioned not to place undue reliance on these and other forward-looking statements contained herein. The forward-looking statements
made in this Current Report on Form 8-K relate only to events as of the date on which the statements are made. The Company undertakes
no obligation to update any forward-looking statements made in this Current Report on Form 8-K to reflect events or circumstances after
the date of this Current Report on Form 8-K or to reflect new information or the occurrence of unanticipated events, except as required
by law. The Company’s forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions,
joint ventures or investments it may make.