NEW YORK, July 7, 2026, 11:04 EDT
- Nasdaq regular hours were in effect, with the 2026 schedule showing July 3 as the Independence Day holiday, not July 7.
- Trident Digital Tech jumped 46.7% to $2.67 at 10:48 a.m. EDT after hitting $3.53 earlier, with 33.2 million shares changing hands.
- Founder and CEO Soon Huat Lim is looking to swap $8 million of debt into shares at $2.13 per current ADS-equivalent, which is about 25% under the last price. The deal is up for a vote on July 8.
- Trident’s debt stands out next to its most recent annual numbers, coming in at about 50 times what the company expects to bring in for 2025 revenue and making up 66% of its liabilities at year end.
Trident Digital Tech Holdings Ltd NASDAQ:TDTH rose Tuesday, bucking a softer U.S. market, after investors weighed in on a related-party debt swap that would turn a founder’s claim into restricted Class B shares ahead of a shareholder vote in Singapore.
Trident was up 46.7% at $2.67 as of 10:48 a.m. EDT, moving from a $1.82 close. Shares opened at $3.01, reached $3.53, and volume for the day hit 33.2 million.
Major indexes slipped, with the Nasdaq Composite dropping 1.25%, the S&P 500 losing 0.51% and the Dow off 0.10%, Reuters data showed.
| Tape check | Price/index level | Move |
|---|---|---|
| Trident Digital Tech NASDAQ:TDTH | $2.67 | up 46.7% |
| Nasdaq Composite | 25,795.69 | off 1.25% |
| S&P 500 | 7,498.72 | down 0.51% |
| Dow Jones industrials | 53,003.22 | slipped 0.10% |
The move wasn’t tied to earnings but to a capital structure deal. A Form 4 filing and proxy notice said Trident owed Lim $8 million as of June 30 and plans to pay it off by issuing 901,408,450 Class B ordinary shares at $0.008875 each. The board signed off and is asking shareholders to approve at the July 8 extraordinary meeting.
The conversion price used the June 18 close for Trident ADSs, each of which equals 240 Class B shares as of June 30. That sets the deal at $2.13 per current ADS-equivalent. Trident shares closed Tuesday at $2.67, up 25.4% from that price. The day’s high was $3.53, a 65.7% jump from the conversion rate.
| Debt-swap read-through | Figure |
|---|---|
| Founder debt going to be converted | $8.0 million |
| Class B shares set for issue | 901.4 million |
| Conversion price per Class B share | $0.008875 |
| Current ADS-equivalent conversion price | $2.13 |
| TDTH’s latest price vs conversion price | +25.4% |
| Intraday high over conversion price | +65.7% |
| New shares measured as ADS equivalents | 3.76 million |
For holders, it’s a tradeoff. The swap takes out an $8 million related-party claim but adds a big batch of Class B shares linked to Lim. The Form 4 shows his direct Class B stake would jump to 993.5 million shares after the deal. He also has more Class B and Class A shares through his entities.
The amount in question is key. Trident’s annual report listed $150,334 in cash, $12.1 million in total liabilities, and a $6.76 million shareholders’ deficit as of Dec. 31. For 2025, net revenue came in at $160,925 with a net loss of $22.76 million. The auditor raised “substantial doubt” over Trident’s ability to stay in business. SEC
| Latest annual filing item | Amount | $8 mln debt equals |
|---|---|---|
| Cash | $150,334 | 53.2x |
| 2025 net revenue | $160,925 | 49.7x |
| Total liabilities | $12.1 million | 66.1% |
| Shareholders’ deficit | $6.76 million | 118.3% |
| 2025 net loss | $22.76 million | 35.2% |
The company described the swap as a way to back up its balance sheet. Lim said this wasn’t about “short-term decisions” and said he was “aligning my interests with those of our shareholders.” GlobeNewswire
Investors are set to vote on a 240-for-1 share consolidation at the Cayman level, a jump in authorized share capital to $1.2 million from $50,000, and new governing documents. The meeting will begin at 10:30 a.m. Singapore time on July 8, ahead of the next regular U.S. session.
The proxy says results will come out at the meeting and show up after the EGM in a Form 6-K.
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