YY Group Holding Limited (NASDAQ:YYGH) shares surged 90.43% in after-hours trading Tuesday after the company announced the cancellation of a $5.94 million second financing tranche and all outstanding warrants.

The stock closed Tuesday’s regular session down 3.36% at $1.15. It then climbed 90.43% to $2.19 in after-hours trading.

YY Group is an AI-enabled workforce management platform and integrated facility management provider operating across Asia and beyond.

$5.94M Financing Tranche Canceled

YY Group said it canceled the second tranche of a convertible promissory note offering worth $5.94 million and all 11,284 outstanding warrants issued with the first tranche.

The company said the move eliminates the potential dilution associated with the warrants and simplifies its capital structure.

The financing had an aggregate principal amount of up to $11.88 million across two tranches. The first tranche of $5.94 million closed March 2, while the second tranche and related warrants will no longer be issued.

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$1.37M Balance Remains

YY Group said most of the first tranche has been repaid and that approximately $1.37 million remains, which the company agreed to repay by Dec. 31, 2026.

No further interest will accrue on the remaining amount from the effective date of the supplemental agreement, subject to the agreement’s default provisions.

After the remaining balance is fully repaid, the company said it will have no convertible debt or warrants outstanding. The agreement also includes restrictions on future equity financings.

"Strengthening our capital structure and reducing potential dilution are important steps in creating long-term value for our shareholders," CEO Mike Fu said.

Fu added that eliminating the second tranche and canceling the outstanding warrants further simplifies the company’s capital structure and reduces potential dilution.

Price Action

YYGH has a market capitalization of $14.76 million, with a 52-week high of $3,900 and a 52-week low of $1.02.

Benzinga’s Edge Stock Rankings show a negative price trend across all time frames.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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