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Investing.com -- Atlasclear Holdings Inc. (NYSE American:ATCH) stock surged 50% Wednesday after the company announced it has closed a $3 million financing deal through the issuance of promissory notes to strategic investors.
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. Investors have the option to convert the notes into equity at the same per share price as a qualified financing. Dawson James Securities acted as placement agent for the offering.
Notably, Sixth Borough Capital invested $500,000 in the notes, marking its second investment following a $500,000 debenture investment last month.
"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," said John Schaible, Executive Chairman of AtlasClear.
The company may raise up to an additional $2 million in gross proceeds through the note financing, according to the announcement.
Craig Ridenhour, President of AtlasClear, stated that the capital infusion will help solidify the company’s operational improvements. He noted that the company has added revenue through investment banking, is adding correspondents, and is seeing accelerated growth in stock loan business.
AtlasClear expects to file its Annual Report on Form 10-K by September 29, which the company says will show material improvements in its balance sheet and Stockholder’s Equity.
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