Trident Digital Tech Holdings Ltd. (TDTH) is having a good Tuesday. The stock jumped more than 66% in premarket trading after the company unveiled a series of capital restructuring moves, including a proposal from founder and CEO Soon Huat Lim to convert about $8 million of his own debt into restricted Class B shares.

Lim's proposal is essentially a bet on the company's future. Instead of asking for his money back, he's swapping debt for equity — but not the kind that hits the open market. These will be restricted, non-trading shares, so the move won't increase Trident's public float. The company says the transaction will strengthen its balance sheet, improve shareholders' equity, and reduce leverage. Lim said the decision reflects his long-term commitment to Trident and aligns his interests with those of shareholders.

“This conversion supports Trident as it transitions to direct Nasdaq ordinary-share trading, expands its enterprise AI commercialization strategy, and pursues global acquisitions,” Lim said, according to a company statement. He added that these initiatives will create a stronger foundation for the company's next stage of growth.

Shareholders will get to weigh in on all of this at an Extraordinary General Meeting scheduled for July 8 in Singapore. They'll also vote on a proposed 240-for-1 share consolidation — but that's a Cayman-only move, tied to Trident's planned shift from its American Depositary Share program to direct Nasdaq ordinary-share trading. Other items on the agenda include changes to authorized share capital, adopting a new Memorandum and Articles of Association, and approving the related share subscription agreement. All proposals are subject to shareholder approval and regulatory requirements.

Beyond the balance sheet cleanup, Trident is also pushing ahead with its enterprise AI strategy. The company says the restructuring will give it more financial flexibility for strategic acquisitions and expansion of its digital infrastructure business. That includes the planned commercialization of the IRMA AI Engine through a partnership with U.S.-based Digital Innovations Group, as well as the TDTHAI platform and expansion of its cybersecurity offerings across Asia-Pacific and Africa.

Management is framing the restructuring as a foundation for long-term growth. For now, the market seems to like what it sees. Trident Digital shares were up 66.48% at $3.03 in premarket trading Tuesday, according to market data.