Fintech AtlasClear plummets after reverse stock split announced

AtlasClear is building a platform to provide financial services to smaller companies. / Photo: Shutterstock

Shares of AtlasClear, a micro-cap company building a platform to offer financial services to smaller and medium-sized businesses, fell almost 10% in after-hours trading on Friday, December 20, following the announcement of a 1-for-60 reverse stock split.

Details

In after-hours trading on Friday, AtlasClear Holdings stock tumbled almost 10% on the New York Stock Exchange to $0.17 per share. In premarket trading today, Monday, December 23, it was down another 2.3% as of this writing. Since its NYSE debut on February 12, 2024, AtlasClear has lost more than 97% of its value.

After the close on Friday, AtlasClear announced its intention to implement a 1-for-60 reverse stock split. The company noted that its shareholders had previously approved four potential split ratios — 1-for-30, 1-for-40, 1-for-50, or 1-for-60 — at a special meeting, leaving the final decision to the board of directors, which opted for the latter ratio.

AtlasClear stated it would not issue fractional shares; shareholders entitled to fractions will receive a whole share instead.

About AtlasClear

AtlasClear Holdings is new to the stock market. Its shares began trading following the merger of AtlasClear Inc. and Quantum FinTech Acquisition Corporation, a SPAC. At the same time, the holding acquired broker-dealer Wilson-Davis & Co.

AtlasClear has the ambitious goal to create an efficient platform for trading, clearing, settlement, and banking tailored to small and medium-sized financial firms. It aims to have a fully vertically integrated suite of cloud-based products, including account opening, trade execution, risk management, regulatory reporting, and settlement.

To achieve these goals, the company plans to expand the business at Wilson-Davis and acquire the bank holding company Commercial Bancorp in 2025, according to a press release issued in November. For the fiscal-2025 first quarter (ended September 30), AtlasClear reported $2.8 million in revenue but did not provide comparative data for the same period last year.