So here's a classic finance story: a company needs money, it sells more stock to get it, and the existing shareholders take a hit. That's what's happening Friday with One and One Green Technologies (YDDL), a waste and scrap metal recycler that went public last fall. Its shares are down a brutal 62% after the company said it's doing a follow-on offering.
The deal is pretty straightforward. One and One Green has a securities purchase agreement with two institutional investors to sell 1.733 million units at $7.50 each. That should bring in about $13 million in gross proceeds, which the company says it'll use for working capital and general corporate purposes. You sell stock, you get cash. Simple.
Except it's never that simple for the people who already own the stock. The offering price of $7.50 is a steep discount to where the stock was trading before the news, and that's why you're seeing this massive drop. When a company sells new shares at a lower price, it dilutes the value of the old shares. It's basic math, but it hurts when you're on the receiving end.
Now, the company is trying to soften the blow with a bit of good news. On the same day, it announced that several key shareholders have voluntarily agreed to extend their lock-up period. These are shares that came from the initial public offering back in October 2025, and they were originally set to become freely tradable on April 9. The shareholders are now saying they'll hold off for another three months.
"We appreciate the continued support from our key shareholders," said Tina Yan, Chairman and CEO of One and One. "Their commitment reinforces alignment with our long-term growth and value creation."
In other words: Don't worry, the big guys aren't dumping their stock just yet. They're sticking around. It's a signal of confidence, or at least that's what management wants you to think. Whether it's enough to counter the dilution from a $13 million capital raise is the question hanging over the stock today.
It's worth remembering the context here. This is a relatively new public company. It debuted on the NASDAQ in October 2025 after an IPO that raised around $11.5 million. So this $13 million follow-on offering is actually raising more money than the IPO itself did. That's a significant capital infusion for a company of this size.
The business itself involves recycling waste materials and scrap metal, and it's based in the Philippines. Back in February, the company announced a bit of operational good news: it received a purchase order from Japan China Trading Co., Ltd., a Japanese industrial materials supplier. The order is for up to 16,000 metric tons of shredded electronic assemblies and scrap metal, with a total value of approximately $17 million.
So you have a company that's landing new business—a $17 million order is nothing to sneeze at—but also needs more cash to operate. That's the story. The stock reaction tells you what the market thinks about the trade-off between dilution and growth potential right now.
As of publication Friday, One and One Green shares were down 62.26% at $5.25.
