AtlasClear Holdings, Inc. (NYSE: ATCH) announced that it has raised $3 million in gross proceeds from the issuance of promissory notes to strategic investors. The financing could increase to $5 million if additional commitments are secured.
The notes, issued with a 20% original issue discount, carry an aggregate principal amount of $3.6 million. They mature either in six months or upon completion of a qualified equity financing of at least $10 million. Investors have the option to convert their notes into equity at the same per-share price as that financing. Dawson James Securities acted as placement agent for the offering.
Sixth Borough Capital contributed $500,000 as part of the investment, following a $500,000 debenture investment it made last month.
In a statement, John Schaible, Executive Chairman of AtlasClear, said, “The Company recently reported excellent numbers for its wholly owned subsidiary, Wilson Davis & Co. As mentioned in that press release, we believe that the business growth demands an expansion of our capital base. We accepted this investment to timely increase our ability to absorb more of the correspondent clearing business immediately available to onboard.”
Robert D. Keyser, Jr., CEO of Dawson James and a member of AtlasClear’s Board, added, “Since making the first investment and joining the Board, it has become evident to me that the AtlasClear opportunity has considerably more upside in a shorter period of time than I originally expected. The Board and Management are exceptional, experienced, and cohesive. The investment announced today brings immediate cash while being mindful of minimizing forward dilution and positions the Company for continued growth while it seeks to close on larger investments.”
Craig Ridenhour, President of AtlasClear, also commented, “The Company continues to improve operational efficiencies, and this infusion of capital will help solidify our progress. We have added revenue through investment banking, we are adding correspondents, and we are recognizing accelerated growth in stock loan. We look forward to filing our Annual Report on Form 10-K on or before September 29th showing material improvements in our balance sheet and Stockholder’s Equity.”
About AtlasClear Holdings, Inc.
AtlasClear Holdings plans to build a cutting-edge technology enabled financial services firm that would create a more efficient platform for trading, clearing, settlement and banking of evolving and innovative financial products with a focus on the small and middle market financial services firms. The strategic goal of AtlasClear Holdings is to have a fully vertically integrated suite of cloud-based products including account opening, trade execution, risk management, regulatory reporting and settlement. The team that leads AtlasClear Holdings consists of respected financial services industry veterans that have founded and led other companies in the industry including Legent Clearing, Cor Clearing, Axos Clearing, NexTrade, Symbiont, and Anderen Bank.
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