Trident Digital Tech Holdings Ltd. (NASDAQ:TDTH) stock rose in Tuesday’s premarket session after the company announced several capital restructuring initiatives. The plan includes Founder and CEO Soon Huat Lim’s proposal to convert about $8 million of debt into restricted Class B shares.
Founder Debt Conversion Aims to Strengthen Balance Sheet
Lim plans to exchange about $8 million of outstanding founder debt for restricted, non-trading Class B shares. The proposal remains subject to shareholder approval.
The company said the transaction will strengthen its balance sheet, improve shareholders’ equity and reduce leverage. It also will not increase the company’s public trading float.
Lim said he chose to convert the debt into restricted Class B equity instead of seeking repayment. He said the decision reflects his long-term commitment to Trident.
He added that the move further aligns his interests with those of shareholders. It also supports Trident as it transitions to direct Nasdaq ordinary-share trading, expands its enterprise AI commercialization strategy and pursues global acquisitions.
According to Lim, these initiatives will create a stronger foundation for the company’s next stage of growth.
Shareholders to Vote on Restructuring Plan
Shareholders will vote on the proposals at an Extraordinary General Meeting on July 8 in Singapore.
They will also consider a proposed 240-for-1 Cayman-only share consolidation. The consolidation is linked to Trident’s planned transition from its American Depositary Share program to direct Nasdaq ordinary-share trading.
In addition, shareholders will vote on changes to the company’s authorized share capital. Other proposals include adopting a new Memorandum and Articles of Association and approving the related share subscription agreement.
All proposals remain subject to shareholder approval and applicable regulatory requirements.
AI Expansion Remains a Growth Priority
Trident said the restructuring will support its next phase of growth. The company expects greater financial flexibility for strategic acquisitions, enterprise AI commercialization and expansion of its digital infrastructure business.
The restructuring also complements Trident’s previously announced enterprise AI strategy. That strategy includes the planned commercialization of the IRMA AI Engine through a partnership with U.S.-based Digital Innovations Group. It also covers TDTHAI and the expansion of the company’s cybersecurity platform across Asia-Pacific and Africa.
Management said the restructuring will provide a stronger foundation for long-term growth.
TDTH Price Action: Trident Digital Tech shares were up 66.48% at $3.03 during premarket trading on Tuesday, according to Benzinga Pro data.
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