Toronto-based Xanadu Quantum Technologies is going public on Nasdaq via merger with special purpose acquisition company Crane Harbor Acquisition (CHAC).
The transaction values Xanadu at a pre-money rollover equity value of $3B and the combined company at an enterprise value of about $3.1B, with a market capitalization of $3.6B.
The combined company is expected to receive about $225M from Crane Harbor’s trust account, assuming no redemptions by Crane Harbor’s public stockholders, and $275M in gross proceeds from a group of investors participating in the transaction via a common equity committed private placement investment, or PIPE, to buy shares of the combined company at $10 apiece.
The quantum computing company noted that over 90% of the capital committed in the PIPE financing was sourced from new investors who were not existing Xanadu shareholders.
The company said net proceeds from the deal will be used to accelerate the development and deployment of its photonic quantum computer systems to fully fault-tolerant, with subsequent commercial traction via both run time sales and PennyLane software monetization.
Existing Xanadu shareholders and management will not get any cash proceeds as part of the deal and will roll over 100% of their Xanadu shares into shares in the combined company.
The transaction has been approved by the boards of both companies.
After the deal closes, shares of the combined company are expected to trade on Nasdaq and on the Toronto Stock Exchange.
Xanadu said it will be the first and only publicly traded pure play photonic quantum computing company.
Related stocks: Rigetti Computing (RGTI), IonQ (IONQ), D-Wave Quantum (QBTS), Arqit Quantum (ARQQ), Quantum Corp. (QMCO), Quantum Computing (QUBT).