AtlasClear raises $3 million through promissory notes from investors

NEW YORK - AtlasClear Holdings, Inc. (NYSE American:ATCH), a financial services company with a market capitalization of $13.5 million, has secured $3 million in gross proceeds through the issuance of promissory notes to strategic investors, the company announced Wednesday. According to InvestingPro analysis, the company currently appears overvalued based on its Fair Value metrics, with recent data showing the company is quickly burning through cash.

The notes were issued with a 20% Original Issue Discount, resulting in an aggregate principal amount of $3.6 million. They mature in six months or upon completion of a qualified equity financing of at least $10 million, whichever comes first. Holders have the option to convert the notes into equity at the closing of a qualified financing at the same per share price. This financing comes at a crucial time, as InvestingPro data reveals the company’s current ratio stands at 0.71, indicating its short-term obligations exceed its liquid assets.

Sixth Borough Capital contributed $500,000 to this financing round, marking its second investment following a $500,000 debenture investment last month. Dawson James Securities acted as placement agent for the offering.

AtlasClear may raise up to an additional $2 million in gross proceeds through this note financing structure.

"We accepted this investment to timely increase our ability to absorb more of the correspondent clearing business immediately available to onboard," said John Schaible, Executive Chairman of AtlasClear, in a press release statement.

Robert D. Keyser, Jr., CEO of Dawson James and Director at AtlasClear, noted that the investment "brings immediate cash while being mindful of minimizing forward dilution."

AtlasClear Holdings operates through its wholly owned subsidiary Wilson-Davis & Co., a full-service correspondent securities broker-dealer registered with the SEC and FINRA. The company also owns Commercial Bancorp of Wyoming, which operates Farmers State Bank.

The company expects to file its Annual Report on Form 10-K by September 29, according to Craig Ridenhour, President of AtlasClear, who stated the capital infusion "will help solidify our progress" in improving operational efficiencies.

In other recent news, AtlasClear Holdings Inc. has announced significant developments that may interest investors. The company has secured a $500,000 debenture investment from Sixth Borough Capital LP, led by Dawson James CEO Robert D. Keyser, Jr. This investment is part of AtlasClear’s strategy to enhance revenues through broker relationships, retail operations, and investment banking activities. In addition, AtlasClear has amended the terms of its $45 million investment agreement with Hanire LLC. The revised agreement restructures the payment schedule, increasing the initial investment to $20 million from the originally planned $10 million, with a second tranche of $25 million to follow. These financial maneuvers are expected to support the company’s growth initiatives.

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