AtlasClear Holdings Jumps 20% After Closing $20M Financing

AtlasClear Holdings (ATCH) shares rose over 20% in early trading on Wednesday after the company said it has closed its previously announced $20 million financing, which was announced last week.

“We are pleased to announce the successful closing of this financing, which represents a strong vote of confidence from our existing investors and partners,” said John Schaible, Executive Chairman of AtlasClear Holdings.

The company said that the investment was led by Funicular Funds, LP, with significant insider participation from Sixth Borough Capital. The financing consisted of $10 million in convertible debt with a 5-year term at an 11% coupon and a conversion price of $0.75 per share, as well as $10 million, inclusive of $4.25 million converted from recent debt financing, invested in the form of units sold at $0.60 per unit.

Retail sentiment on AtlasClear remained unchanged in the ‘bearish’ territory compared to a day ago, with message volumes at ‘low’ levels, according to data from Stocktwits.

AtlasClear said that each unit consists of one share of common stock and one warrant. After giving effect to the rollover of the recent debt financing, the transaction resulted in gross cash proceeds of $15.75 million.

“This transaction provides the company with the resources to scale our operations, grow our team, and deploy technologies that we believe will create durable competitive advantages,” said Craig Ridenhour, President of AtlasClear Holdings.

In September, AtlasClear raised $3 million in gross proceeds through the issuance of promissory notes from strategic investors.

Shares of AtlasClear have declined 96% in the last 12 months.

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