SU Group tumbles 11% after hours on warrant price cut dilution concerns

SU Group Holdings (SUGP) tumbled 11% in after-hours trading to $0.992, reversing most of Tuesday's 26.06% regular-session gain that saw the stock surge over 140% intraday.

The pullback came after the company announced on June 16 a sharp reduction in warrant exercise prices from $5.50 to $0.87, effective June 17, to incentivize warrant exercises for working capital and strategic initiatives. The steep cut raised investor concerns about potential equity dilution.

The warrant adjustment pressure outweighed positive news of a distribution agreement with German tech firm GEZE to expand smart building and security technology products.