AtlasClear Holdings, Inc. announced that it has entered into a securities purchase agreement with new investor, Funicular Fund, LP managed by Cable Car Capital LLC that it has issued a secured convertible promissory note in the principal amount of $6,000,000 on February 9, 2024. The Funicular Note has a stated maturity date of November 9, 2025. Interest accrues at a rate per annum equal to 12.5%, and is payable semi-annually on each June 30 and December 31.

On each interest payment date, the accrued and unpaid interest shall, at the election of the Company in its sole discretion, be either paid in cash or paid in-kind by increasing the principal amount of the Funicular Note. In the event of an Event of Default, in addition to Funicular?s other rights and remedies, the interest rate would increase to 20% per annum. The Funicular Note is convertible, in whole or in part, into shares of Common Stock at the election of the holder at any time at an initial conversion price of $10 per share.