Quantum FinTech Acquisition Corp. (QFTA) and AtlasClear Waive Minimum Cash

Quantum FinTech (NYSE:QFTA) announced this morning that it has waived the minimum cash condition ahead of its completion vote in connection to its proposed merger with AtlasClear.

Originally, the parties had set a minimum cash threshold of $40 million at the time of the deal announcement without a PIPE. However, they now believe that waiving this requirement will enhance the likelihood of a successful closing.

The SPAC raised $201 million in proceeds from its IPO in February 2021, but saw 74.9% of its trust redeemed during an August vote, leaving it with $53 million post-vote.

Today’s news comes just two weeks before QFTA’s completion vote, scheduled for November 3. This would mark the SPAC’s second attempt at trying to close a business combination.

Quantum FinTech initially planned to combine with TradeStation, a subsidiary of Monex Group, in November 2021, targeting a deal closure in the first half of 2022. However, TradeStation issued a termination notice, citing a specific provision in their merger agreement, which allowed either party to terminate if the deal had not closed by August 1, 2022.

QFTA inked its deal with AtlasClear in November 2022, which is itself combining with correspondent clearing broker-dealer Wilson Davis & Co. and acquiring Commercial Bancorp of Wyoming. Upon closing of the business combination, the combined company is expected to list on the NYSE American with its common stock trading under the new ticker symbol, “ATCH”.