Solidion Technology (STI) said Wednesday it is restructuring its $4 million equity financing from August last year that removes potential dilution from pre-funded warrants.

The firm said its long-term investors, Madison Bond and Bayside Project, will convert their 3.4 million pre-funded warrants into stock and commit to hold for at least 12 months. It added that all Series C and D warrants linked to the financing are cancelled.

The company said the restructuring is eliminating about $10 million in derivative liabilities, increasing shareholder equity and simplifying its financial reporting.

The transaction removes the reliance on future pre-funded warrant financings or other types of overly dilutive structures which could weigh on its stock price, Solidion said.

Shares were up over 2% in recent trading.

Price: 5.00, Change: +0.13, Percent Change: +2.67