Atlasclear Holdings provides update on stock volatility

AtlasClear Holdings (ATCH) provided this letter to stockholders from its executive chairman: “As Executive Chairman of AtlasClear Holdings, I am pleased to respond to numerous requests for an update in relation to the high level of stock volatility and very high volumes we have witnessed throughout last week’s trading. Following our recently filed Form 10-Q, we issued a press release on February 21st, 2025, after the market close, more simply describing the Calendar Year 2024 results of our wholly owned subsidiary, Wilson Davis & Company, on a Non-GAAP, stand-alone basis. As stated in our press release, on a subsidiary-level, stand-alone, non-GAAP basis, Wilson Davis & Company’s Calendar Year 2024 revenues exceeded $13.2 million and Net Income exceeded $1.75 million. On the following Monday, February 24th, 2025, we believe that in reaction to these numbers, our stock “ATCH” traded over 145,000,000 shares and hit highs reflecting more than a 400% increase in value the same day. Wednesday, February 26, 2025, the stock traded over 18,500,000 shares and ranged between $2.80-$7.25 per share, closing at $2.82 per share. As we will clarify specifically in our next Form 10-Q, this heavy volatility and high volumes have been beneficial to the Company’s balance sheet. Following our 1 for 60 reverse split effective December 31, 2024, the Company had just over 387,000 shares outstanding. Primarily over the last trading week, through conversions of the convertible notes, the number of outstanding shares as of the close on Friday, February 28th, grew to over 3,320,000 shares, which was an increase of over 740% in shares outstanding, which reduced our debt significantly and reflected an increase in market capitalization over 800% to just over $10,700,0000 as of February 28, 2025. We continue to work with our announced investment partner, Hanire, LLC, to complete the first tranche of its proposed investment. To supplement its capital strategies, the Company will begin a non-deal roadshow to further educate the market about the value we believe ATCH represents. Finally, we recently filed an amendment to our registration statement, which includes shares issuable to Tau Investment Partners LLC pursuant to an equity line of credit, intended to reinforce the Company’s access to additional capital. We are excited about how beneficial the recent trading activity has proven for our Company, the expected delivery of our first investment tranche from Hanire, LLC, and the performance of our subsidiary operationally, Wilson-Davis, especially based on our expectations for the Company performance in Q1 of Calendar 2025. We believe that we have an undervalued Company with an ability to grow significantly as we move forward.”