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.
