AtlasClear partners with LocBox for stock loan management

NEW YORK - AtlasClear Holdings, Inc. (NYSE:ATCH), a financial services firm currently trading at $4.16 with a market capitalization of $0.86 million, has partnered with LocBox, a web-based stock loan inventory management platform, to enhance its correspondent clearing platform through Wilson-Davis. The collaboration aims to capitalize on the hard-to-borrow stock lending opportunities within the company. According to InvestingPro, the stock’s RSI indicates oversold territory, potentially presenting an interesting entry point for value investors.

Craig Ridenhour, President of AtlasClear, expressed confidence that the integration of LocBox’s technology is in line with the company’s FinTech approach and anticipates it will notably increase revenue streams. This development comes as the company trades at a P/E ratio of 3.05, suggesting potential undervaluation despite experiencing significant price volatility, as noted by InvestingPro analysts who have identified 12 additional key factors affecting the stock’s performance.

LocBox’s platform, along with its application programming interface (API), enables entities to monetize their hard-to-borrow inventory by offering it to short sellers who require legal compliant locates and preborrows, thus fostering a transparent and efficient market.

AtlasClear Holdings is focused on building a technologically advanced financial services firm catering to small and mid-sized financial services firms. The company’s strategic plan includes a suite of cloud-based products for trading, clearing, settlement, and banking.

Wilson-Davis & Co., Inc., a full-service correspondent securities broker-dealer and part of the collaboration, is a member of several regulatory and clearing organizations and has been serving the investment community since 1968.

This announcement contains forward-looking statements about AtlasClear’s future operations and financial performance. These include potential outcomes from the partnership with LocBox, such as increased profitability and strategic growth through acquisitions. With the next earnings report expected on March 10, 2025, and analysts forecasting profitability this year, investors will be watching closely. However, the company cautions that actual results may differ due to various economic, business, and market factors, particularly given its current WEAK financial health rating according to InvestingPro analysis.

The company’s forward-looking statements are based on current management expectations and are subject to risks and uncertainties. AtlasClear Holdings has stated that no assurance can be given that future developments will align with current expectations.

The information in this article is based on a press release statement from AtlasClear Holdings.

In other recent news, AtlasClear Holdings has announced several significant changes. The company disclosed the resignation of Robert McBey from his position as a director, not due to any disagreements with the company’s operations, policies, or practices. AtlasClear also reported substantial changes in its leadership, including the departure of its CFO, Richard Barber, and CEO, Robert McBey. Jeff Sime was appointed as the new CEO of its wholly owned subsidiary, Wilson-Davis Co., Inc.

AtlasClear Holdings has entered into a securities purchase agreement with Hanire, LLC, marking a significant private placement of equity securities. The agreement includes the sale of up to 333,333 shares of AtlasClear’s common stock and a convertible promissory note with a principal amount of up to $40 million. The transaction is set to close by January 31, 2025, with standard closing conditions.

In addition to these developments, the company has made amendments to its bylaws, specifically altering the quorum requirement for stockholder meetings from a majority to 33.3% of the voting power of outstanding shares. Despite current market challenges, analysts forecast an EPS of $47.58 for FY2025. AtlasClear also reported settling claims with Quantum (NASDAQ:QMCO) Ventures LLC and Chardan Capital Markets, LLC, involving a new $5,209,764 non-interest-bearing convertible note.

Keep in mind that these are recent developments and the full implications of these changes for AtlasClear Holdings’ strategy and operations remain to be seen.

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