AtlasClear Holdings, Inc. Announces Agreement for an Investment of up to $45 million in its Company
AtlasClear Holdings (NYSE: ATCH) has secured an agreement with Hanire for an investment of up to $45 million through equity and convertible debt. The investment will be structured in tranches, with the first $5 million expected in January 2025. The deal includes a $5 million equity investment through 20 million common stock shares and a convertible loan for the remaining amount.
The investment aims to help AtlasClear achieve key strategic goals, including: restructuring current debt with better terms, increasing capital base at Wilson-Davis subsidiary to expand clearing business, supporting the planned Commercial Bancorp of Wyoming acquisition, and providing capital for targeted acquisitions. The convertible loan features a 40% discount to the volume-weighted average stock price at conversion, subject to stockholder approval.
AtlasClear Holdings (NYSE: ATCH) ha raggiunto un accordo con Hanire per un investimento fino a 45 milioni di dollari attraverso equity e debito convertibile. L'investimento sar脿 strutturato in pi霉 tranche, con i primi 5 milioni attesi nel gennaio 2025. L'affare include un investimento azionario di 5 milioni di dollari tramite 20 milioni di azioni ordinarie e un prestito convertibile per l'importo restante.
L'investimento mira ad aiutare AtlasClear a raggiungere obiettivi strategici fondamentali, tra cui: ristrutturare il debito attuale con condizioni pi霉 vantaggiose, aumentare la base di capitale presso la controllata Wilson-Davis per espandere l'attivit脿 di clearing, sostenere l'acquisizione pianificata della Commercial Bancorp del Wyoming e fornire capitale per acquisizioni mirate. Il prestito convertibile presenta uno sconto del 40% rispetto al prezzo medio ponderato per volume delle azioni al momento della conversione, soggetto all'approvazione degli azionisti.
AtlasClear Holdings (NYSE: ATCH) ha conseguido un acuerdo con Hanire para una inversi贸n de hasta 45 millones de d贸lares a trav茅s de capital y deuda convertible. La inversi贸n se estructurar谩 en tramos, con los primeros 5 millones esperados para enero de 2025. El acuerdo incluye una inversi贸n de capital de 5 millones de d贸lares mediante 20 millones de acciones ordinarias y un pr茅stamo convertible por el monto restante.
La inversi贸n tiene como objetivo ayudar a AtlasClear a alcanzar metas estrat茅gicas clave, incluidas: reestructuraci贸n de la deuda actual con mejores condiciones, aumento de la base de capital en la filial Wilson-Davis para expandir el negocio de compensaci贸n, apoyo a la adquisici贸n planificada de Commercial Bancorp de Wyoming, y proporcionar capital para adquisiciones espec铆ficas. El pr茅stamo convertible tiene un descuento del 40% respecto al precio medio ponderado por volumen de las acciones al momento de la conversi贸n, sujeto a la aprobaci贸n de los accionistas.
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AtlasClear Holdings (NYSE: ATCH) a s茅curis茅 un accord avec Hanire pour un investissement pouvant aller jusqu'脿 45 millions de dollars 脿 travers des capitaux propres et une dette convertible. L'investissement sera structur茅 en tranches, avec les premiers 5 millions attendus en janvier 2025. L'accord inclut un investissement en capitaux propres de 5 millions de dollars 脿 travers 20 millions d'actions ordinaires et un pr锚t convertible pour le montant restant.
Ce partenariat vise 脿 aider AtlasClear 脿 atteindre des objectifs strat茅giques cl茅s, notamment : la restructuration de la dette actuelle avec de meilleures conditions, l'augmentation de la base de capital de la filiale Wilson-Davis pour 茅tendre l'activit茅 de compensation, le soutien 脿 l'acquisition pr茅vue de la Commercial Bancorp du Wyoming, et la fourniture de capital pour des acquisitions cibl茅es. Le pr锚t convertible propose une remise de 40 % par rapport au prix moyen pond茅r茅 par le volume des actions lors de la conversion, sous r茅serve de l'approbation des actionnaires.
AtlasClear Holdings (NYSE: ATCH) hat eine Vereinbarung mit Hanire 眉ber eine Investition von bis zu 45 Millionen Dollar durch Eigenkapital und wandelbare Schulden gesichert. Die Investition wird in Tranchen strukturiert, wobei die ersten 5 Millionen im Januar 2025 erwartet werden. Der Deal umfasst eine Eigenkapitalinvestition in H枚he von 5 Millionen Dollar durch 20 Millionen Stammaktien sowie ein wandelbares Darlehen 眉ber den verbleibenden Betrag.
Ziel der Investition ist es, AtlasClear zu helfen, wichtige strategische Ziele zu erreichen, einschlie脽lich: Umstrukturierung der aktuellen Schulden zu besseren Konditionen, Erh枚hung des Kapitalansatzes bei der Tochtergesellschaft Wilson-Davis zur Erweiterung des Clearing-Gesch盲fts, Unterst眉tzung der geplanten 脺bernahme der Commercial Bancorp von Wyoming sowie Bereitstellung von Kapital f眉r gezielte Akquisitionen. Das wandelbare Darlehen bietet einen Rabatt von 40 % auf den volumen-weighted Durchschnittspreis der Aktien zum Zeitpunkt der Umwandlung, vorbehaltlich der Genehmigung durch die Aktion盲re.
- Secured up to $45 million investment commitment from Hanire
- Debt restructuring opportunity with better terms and reduced dilution
- Capital increase for Wilson-Davis subsidiary expansion
- Funding support for Commercial Bancorp of Wyoming acquisition
- Strategic partnership providing cost efficiencies and revenue opportunities
- 40% discount on convertible debt may lead to significant dilution
- Investment is milestone-based and not guaranteed in full
- First tranche delayed until January 2025
- Stockholder approval required for convertible loan shares
Insights
The
The milestone-based tranches create a performance-linked funding mechanism that aligns investor and company interests. This capital injection addresses multiple critical needs: debt restructuring, Wilson-Davis subsidiary capitalization and potential bank acquisition funding. The reduced dilution impact compared to traditional equity raises demonstrates sophisticated financial engineering.
The strategic partnership with Hanire extends beyond mere funding, potentially creating revenue synergies through their brokerage and investment banking operations. This could accelerate AtlasClear's path to profitability and enhance its competitive position in the small and middle-market financial services segment.
The proposed acquisition of Commercial Bancorp of Wyoming represents a strategic vertical integration play that could significantly enhance AtlasClear's service offering. Securing Federal Reserve approval for bank acquisition requires substantial capital adequacy - this investment provides important backing for regulatory compliance.
The combination of a traditional banking platform with modern clearing and settlement technology could create a unique competitive advantage. Farmers State Bank's established presence since 1915 provides a stable foundation for expanding into contemporary financial services. This hybrid model, merging traditional banking with modern fintech capabilities, positions AtlasClear to capture emerging opportunities in digital asset services while maintaining regulatory compliance.
The strategic focus on correspondent clearing through Wilson-Davis is particularly timely given market structure evolution and increasing demand for efficient middle-market clearing solutions. The capital injection enables Wilson-Davis to expand its clearing capabilities and potentially capture market share in a segment underserved by larger clearing firms.
The planned cloud-based integration of account opening, trading, risk management and settlement addresses key pain points in current market infrastructure. The management team's track record with companies like Penson Clearing and Southwest Securities adds credibility to their execution capability. This could position AtlasClear as a significant player in modernizing financial market infrastructure for smaller institutions.
鈥淲e are very excited about this partnership and the investment being made into AtlasClear Holdings by Hanire. This is the culmination of a relationship between Management of the Company and the Principals of Hanire that we have been developing over the course of many years. The investment is expected to allow AtlasClear Holdings to accomplish a number of our priorities, and we believe it is a real turning point for our Company. For Hanire, AtlasClear Holdings provides an expanding platform that will assist it with its brokerage and investment banking businesses while creating cost efficiencies and enhanced revenue opportunities for both parties. This is an exciting and synergistic deal,鈥 said Craig Ridenhour, President, AtlasClear Holdings.
The agreements signed with Hanire provide for an up-to-
The Company believes the investment will allow AtlasClear Holdings to achieve a number of strategic goals, including:
- Allow for the restructuring of the current debt structure of the Company with better terms and less dilution to existing stockholders
-
Increase the capital base at its wholly-owned subsidiary, Wilson-Davis & Co., Inc. (鈥淲ilson-Davis鈥), thereby allowing
Wilson -Davis to expand its correspondent clearing business and accelerate additional business lines. -
Allow the Company to move forward with the formal filings with the Federal Reserve for the proposed acquisition of Commercial Bancorp of
Wyoming while providing additional capital for the bank upon a potential approval. - Provide capital for targeted, accretive acquisitions.
鈥淲e believe this is a tremendous day for our Company and our stockholders. It鈥檚 a thoughtfully structured deal that we believe delivers more capital into the Company as we restructure our debt, hope to achieve profitability, and deliver the capital needed for our proposed bank acquisition upon approval. In full, we believe this investment will solidify our capital foundation, reduce potential dilution, and position our Company to maximize our long-term stockholder value. We took great care to find the right investment partner to help us grow,鈥 said Mr. Ridenhour.
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 Penson Clearing, Southwest Securities, NexTrade, Symbiont, and Anderen Bank.
About
About Commercial Bancorp of
Commercial Bancorp is a bank holding company operating through its wholly-owned subsidiary, Farmers State Bank (鈥淔SB鈥) and has been servicing the local community in
Cautionary Statements Regarding Forward-Looking Statements
This communication contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, that reflect AtlasClear Holdings鈥 current views with respect to, among other things, the future operations and financial performance of AtlasClear Holdings. Forward-looking statements in this communication may be identified by the use of words such as "anticipate," "assume," "believe," "continue," "could," "estimate," "expect," "foreseeable," "future," "intend," "may," "outlook," "plan," "potential," "proposed," "predict," "project," "seek," "should," "target," "trends," "will," "would" and similar terms and phrases. Forward-looking statements contained in this communication include, but are not limited to, statements as to (i) the closing of all or any portion of the investment from Hanire, (ii) AtlasClear Holdings鈥 expectations regarding the benefits of the investment from Hanire, including its ability to allow AtlasClear Holdings to accomplish a number of its strategic goals, achieve profitability, deliver the capital needed for its proposed bank acquisition upon approval, solidify its capital foundation, reduce potential dilution, and position the Company to maximize long-term stockholder value, (iii) AtlasClear Holdings鈥 expectations as to future operational results, (v) AtlasClear Holdings鈥 anticipated growth strategy, including expected acquisitions, and (v) the financial technology of AtlasClear Holdings.
The forward-looking statements contained in this communication are based on the current expectations of AtlasClear Holdings and its management and are subject to risks and uncertainties. No assurance can be given that future developments affecting AtlasClear Holdings will be those that are anticipated. Actual results may differ materially from current expectations due to changes in global, regional or local economic, business, competitive, market, regulatory and other factors, many of which are beyond the control of AtlasClear Holdings. Should one or more of these risks or uncertainties materialize, or should any of the assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. Factors that could cause actual results to differ may emerge from time to time, and it is not possible to predict all of them.
Such factors include, but are not limited to: any failure by Hanire to deliver the tranches of capital on the anticipated schedule, or at all; any failure by the Company to meet the milestones required to receive the tranches of capital on a timely basis, or at all; failure of the Company to realize the anticipated benefits of the investment of capital, such as achieving profitability, delivering the capital needed for its proposed bank acquisition upon approval, solidifying its capital foundation, reducing potential dilution, and positioning the Company to maximize long-term stockholder value; failure by AtlasClear Holdings to satisfy the closing conditions to any of the tranches of capital, including receipt of stockholder approval; AtlasClear鈥檚 inability to successfully integrate, and/or realize the anticipated benefits of, the acquisition of
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FAQ
What is the total investment amount Hanire agreed to invest in ATCH?
When will ATCH receive the first investment tranche from Hanire?
What is the conversion discount for ATCH's convertible debt with Hanire?
How many common stock shares will be issued in ATCH's equity investment portion?
What are the main strategic goals for ATCH's $45 million investment?
