AtlasClear said that $10 million would be invested in the form of convertible debt with a five-year term at an 11% coupon and a conversion price of $0.75.
AtlasClear Holdings (ATCH) shares jumped over 39% in early trading on Thursday after the company said it has entered into definitive agreements for a $20 million financing.
The firm said that $10 million would be invested in the form of convertible debt with a five-year term at an 11% coupon and a conversion price of $0.75 while the other $10 million is to be invested in the form of units sold at $0.60 per unit that include one share of common stock and one warrant with a strike price of $0.75
“We are excited to report that Funicular Funds, LP has led a reinvestment into our company as part of a $20,000,000 financing, which includes the rollover of $4,250,000 of the recent debt financing and participation from Sixth Borough Capital,” said John Schaible, Executive Chairman of AtlasClear.
Retail sentiment on AtlasClear remained unchanged in the ‘extremely bearish’ territory compared to a day ago, with message volumes at ‘extremely low’ levels, according to data from Stocktwits.
“We believe that this financing will allow the company to fully accelerate its business model, onboard new correspondents, and expand into other lines of revenue,” Schaible said.
The company said that after considering the rollover, the financing will result in gross proceeds of $15.75 million before placement agent fees and other transaction expenses. “This capital will allow the company to increase its staff, its bandwidth, and its capabilities,” said President of AtlasClear Craig Ridenhour.
In September, the company announced that it raised $3 million in gross proceeds through the issuance of promissory notes from strategic investors.
Shares of AtlasClear have declined 95% this year.
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