AtlasClear Announces Closing of Business Combination with Quantum FinTech Acquisition Corporation and Acquisition of Wilson-Davis & Co.
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Insights
The consummation of the business combination between AtlasClear, Inc. and Quantum FinTech Acquisition Corporation represents a significant event for both entities, with AtlasClear poised to enhance its market position through this strategic merger. The initiation of trading on the NYSE American LLC under the new ticker symbol ATCH is likely to garner investor interest, potentially influencing AtlasClear's stock liquidity and valuation. The release of 4,000,000 founder shares from escrow could introduce additional volatility in the short-term as the market absorbs the new supply. However, this action also suggests confidence in the merger's prospects, signaling a stabilization of ownership post-transaction.
AtlasClear's strategy to target small and midsize financial institutions with a one-stop technology and financing solution addresses a clear market need. By integrating a correspondent clearing firm and a Federal Reserve member bank, AtlasClear could disrupt traditional capital market services, offering a competitive edge. This move is indicative of a broader industry trend where consolidation and technological integration are creating efficiencies and potentially reshaping the competitive landscape. Investors will be watching closely to assess AtlasClear's ability to execute its strategy and realize synergies from the acquisition of Wilson-Davis & Co., Inc. and the pending acquisition of Commercial Bancorp of Wyoming.
From a legal perspective, the seamless completion of the business combination without the need for a charter amendment for an extension reflects a well-orchestrated transaction, adhering to Quantum's charter and regulatory requirements. The ongoing process to acquire Commercial Bancorp of Wyoming, which is contingent on regulatory approvals, underscores the regulatory complexities involved in such mergers. It is essential for investors to monitor the regulatory landscape as it can significantly impact the timeline and success of pending acquisitions and consequently, AtlasClear's growth trajectory.
AtlasClear Expected to Begin Trading on the NYSE on Monday, February 12 Under the Ticker “ATCH”
AtlasClear also announced the completion of its acquisition of broker-dealer
“Today marks an important milestone for AtlasClear as we embark on our journey to bring a one-stop technology and financing solution to small and midsize financial institutions,” said John Schaible, Chairman and Chief Executive Officer of Quantum, and Chief Strategy Officer of AtlasClear. “As a public company, we’ll seek to grow both organically and through further acquisitions, as well as by expanding the balance sheet for both the clearing firm and the bank.”
“With the completion of this business combination, the AtlasClear team will focus on filling a gap in the capital markets where smaller institutions, broker-dealers and asset managers have been at a disadvantage,” said Craig Ridenhour, Chief Business Development Officer of AtlasClear. “By combining an operating, profitable correspondent clearing firm, with an operating, profitable Federal Reserve member bank, and then layering in technology to handle the front office, back office and risk management functions of those institutions, we’re creating one venue where these smaller financial institutions can service all of their relevant operational needs, including trade clearing, settlement and banking services.”
As a result of the completion of the business combination by the deadline under Quantum’s charter, Quantum did not need to implement the charter amendment for an additional extension, which was approved by its stockholders at a special meeting held on February 8, 2024.
In connection with the closing of the business combination, AtlasClear has instructed the escrow agent to release from escrow 4,000,000 of Quantum’s founder shares that were held in escrow pursuant to the escrow agreement from Quantum’s initial public offering (consisting of 949,084 shares owned by Chardan Quantum, LLC and 3,050,916 shares owned by Quantum Ventures, LLC) , as contemplated by the amendment to such escrow agreement disclosed on October 31, 2023.
About AtlasClear
AtlasClear 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 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 will lead AtlasClear consists of respected financial services industry veterans that have founded and led other companies in the industry including Penson Clearing, Southwest Securities, NexTrade and Anderen Bank.
About the Financial Technology
The nature of the combined entity is expected to be supported by robust, proven, financial technologies with a full suite that will enable the flow of business and success of the enterprise. The combined entity is expected to have a full exchange platform for a spectrum of financial products. In addition, the combined entity is expected to have a full prime brokerage and, following the Commercial Bancorp acquisition, a prime banking platform with complete front-end delivery. The enterprise is anticipated to offer a fixed income risk management platform which can be expanded to a diverse application on financial products.
The combined entity is expected to be run by a new digital suite of technologies that became part of the transaction at closing.
About Quantum FinTech Acquisition Corporation
Quantum is a blank check company, also commonly referred to as a special purpose acquisition company, or SPAC, that was formed for the purpose of entering into a merger, share exchange, asset acquisition, stock purchase, recapitalization, reorganization or other similar business combination with one or more businesses, with a principal focus on identifying high-growth financial services and fintech businesses as targets.
About
About Commercial Bancorp of
Commercial Bancorp is a bank holding company operating through its wholly-owned subsidiary, Farmers State Bank (“FSB”) and has been servicing the local community in
Cautionary Statement 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’s current views with respect to, among other things, the future operations and financial performance of AtlasClear and the combined company. 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) anticipated use of proceeds from the transaction, (ii) AtlasClear’s expectations as to various operational results and market conditions, (iii) AtlasClear’s anticipated growth strategy, including the proposed acquisitions, (iv) anticipated benefits of the transaction and proposed acquisitions, (v) the financial technology of the combined entity, (vi) anticipated timing for the combined company to begin trading on NYSE Amex, and (vii) statements regarding the proposed transaction between AtlasClear and Pacsquare, including the anticipated benefits of such acquisition.
The forward-looking statements contained in this communication are based on the current expectations of AtlasClear and its management and are subject to risks and uncertainties. No assurance can be given that future developments affecting AtlasClear or the combined company 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. 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: the risk that AtlasClear’s acquisition of Commercial Bancorp and its subsidiary bank, FSB, does not close as a result of the failure to satisfy the conditions to closing such acquisition (including, without limitation, the receipt of approval of Commercial Bancorp’s stockholders and receipt of required regulatory approvals); failure to recognize the anticipated benefits of the transaction, which may be affected by, among other things, competition, the ability of the combined entity to maintain relationships with customers and suppliers and strategic alliance third parties, and to retain its management and key employees; estimates of AtlasClear and the combined company’s financial performance being materially incorrect predictions; AtlasClear’s failure to complete the proposed acquisitions on favorable terms to AtlasClear or at all; AtlasClear’s inability to integrate, and to realize the benefits of, the proposed acquisitions; AtlasClear’s inability to realize the anticipated benefits of the transaction with Pacsquare; changes in general economic or political conditions; changes in the markets that AtlasClear targets or the combined company will target; slowdowns in securities or cryptocurrency trading or shifting demand for trading, clearing and settling financial products; any change in laws applicable to AtlasClear or any regulatory or judicial interpretation thereof; and other factors, risks and uncertainties, including those that were included under the heading “Risk Factors” in the final proxy statement/prospectus filed with the SEC, and those included under the heading “Risk Factors” in Quantum’s 2022 Form 10-K and its subsequent filings with the SEC. AtlasClear and Quantum caution that the foregoing list of factors is not exhaustive. Any forward-looking statement made in this communication speaks only as of the date hereof. Plans, intentions or expectations disclosed in forward-looking statements may not be achieved and no one should place undue reliance on such forward-looking statements. Neither AtlasClear nor Quantum undertakes any obligation to update, revise or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by any applicable securities laws.
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Source: AtlasClear
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