IonQ Raises Over $372 Million Via At-the-Market Equity Offering Program

Rhea-AI Summary

IonQ (NYSE: IONQ) has successfully raised approximately $372.6 million through its at-the-market (ATM) equity offering program, resulting in net proceeds of about $360 million. The company has terminated the ATM Program after determining it has secured sufficient capital for its anticipated needs.

The fundraising brings IonQ's pro-forma cash balance to over $700 million as of December 31, 2024. Following the program's termination, company executives and directors will not sell shares during the current trading window through March 14, 2025, except for Executive Chair Peter Chapman, who may exercise options for up to 2.0 million shares (less than 23% of his vested equity) for personal real estate and tax obligations.

Positive

• Successful raise of $372.6M ($360M net) through ATM offering
• Strong cash position with over $700M pro-forma balance
• Most executives and directors committed to not selling shares during trading window

Negative

• Significant shareholder dilution from issuing 16,038,460 new shares
• Executive Chair plans to sell up to 2M shares, potentially impacting market sentiment
• Company cited 'market disruptions' and trading price concerns as factors for terminating ATM

Insights

Financial Analyst

IonQ's successful raise of $372.6 million through its at-the-market (ATM) offering represents a significant financial achievement for the quantum computing firm. The company netted approximately $360 million in proceeds, bringing its pro forma year-end cash position to over $700 million. This substantial capital infusion provides IonQ with a strengthened balance sheet to fund continued development and commercialization efforts in both quantum computing and quantum networking divisions.

The termination of the ATM program is strategically positive as it signals management's confidence that they've secured sufficient capital for their anticipated needs while removing a potential stock price overhang. By closing the program, IonQ eliminates market concerns about ongoing dilution that typically accompany active ATM facilities.

While the offering did result in approximately 7% dilution based on the company's current market cap, this is a reasonable trade-off for the financial flexibility gained. The $700 million cash position provides a considerable runway that should allow IonQ to continue advancing its technological development without immediate financing concerns.

The disclosure about Executive Chair Peter Chapman's potential sale of up to 2 million shares represents less than 1% of IonQ's outstanding shares and is attributed to personal needs rather than a lack of confidence in the company. The transparency regarding insider selling intentions and the commitment from other executives not to sell during the open trading window demonstrates good corporate governance.

Pro forma year-end cash now over $700 million

At-the-Market Program has been terminated

COLLEGE PARK, Md.--(BUSINESS WIRE)-- IonQ, Inc. (NYSE: IONQ), a leader in the quantum computing and quantum networking industries, today announced that under its “at-the-market” equity offering program (the “ATM Program”) it has sold a total of 16,038,460 shares of its common stock for an aggregate amount of approximately $372.6 million, netting aggregate proceeds of approximately $360 million.

The Company has determined that it has raised a sufficient amount under the program to meet its currently anticipated capital needs. The Company also determined that given overall recent market disruptions, the trading prices for its shares, and the overhang from having an ATM Program in effect, the ATM Program should be terminated. The Company has therefore terminated the ATM Program today and a prospectus supplement will be filed under Rule 424(c) reflecting such termination.

Niccolo De Masi, the Company’s President and CEO, said “We are pleased to have been able to raise over $350 million, even in the recent turbulent markets. On a pro-forma basis, this brings our cash balance on December 31, 2024 to over $700 million. We are confident that we now have the capital we need for continued global leadership in both our quantum computing and quantum networking divisions.”

The Company noted that while, following the termination of the ATM Program, the Company’s officers and directors generally would not be limited in their ability to sell shares during the Company’s current open trading window through March 14, 2025, none of the Company’s executive officers or directors intend to sell any shares during the trading window, except our Executive Chair, Peter Chapman.* Mr. Chapman has previously disclosed that he may sell shares during the window, and he may exercise options for up to 2.0 million shares and sell those shares to meet near term capital needs related to a personal real estate purchase and to pay taxes associated with option exercises. Mr. Chapman hasn’t exercised options or sold any shares over the past six years, and what he may sell represents less than 23 percent of his vested equity interest in the Company.

*Excludes shares sold to cover statutory tax withholding obligations in connection with the vesting of restricted stock units.

About IonQ

IonQ, Inc. is a leader in the quantum computing and networking industries, delivering high-performance systems aimed at solving the world’s largest and most complex commercial and research use cases. IonQ’s current generation quantum computers, IonQ Forte and IonQ Forte Enterprise, are the latest in a line of cutting-edge systems, boasting 36 algorithmic qubits. The company’s innovative technology and rapid growth were recognized in Newsweek’s 2025 Excellence Index 1000, Forbes’ 2025 Most Successful Mid-Cap Companies list, and Built In’s 2025 100 Best Midsize Places to Work in Washington DC and Seattle, respectively. Available through all major cloud providers, IonQ is making quantum computing more accessible and impactful than ever before. Learn more at IonQ.com.

IonQ Forward-Looking Statements

This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Some of the forward-looking statements can be identified by the use of forward-looking words. These statements include those related to the company’s technology driving commercial quantum advantage in the future, IonQ’s quantum computing capabilities and plans, the efficiency of quantum algorithms run on IonQ’s quantum computers, , and the scalability of IonQ’s quantum computing offerings. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, including but not limited to: changes in laws and regulations affecting IonQ’s patents; IonQ’s ability to implement its technical roadmap; or IonQ’s ability to maintain or obtain patent protection for its products and technology, including with sufficient breadth to provide a competitive advantage. You should carefully consider the foregoing factors and the other risks and uncertainties disclosed in the Company’s filings, including but not limited to those described in the “Risk Factors” section of IonQ’s most recent Quarterly Report on Form 10-Q and other documents filed by IonQ from time to time with the Securities and Exchange Commission. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and IonQ assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise. IonQ does not give any assurance that it will achieve its expectations. IonQ may or may not choose to practice or otherwise use the inventions described in the issued patents in the future.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250310934415/en/

IonQ Media contact:

Jane Mazur

press@ionq.co

IonQ Investor Contact:

investors@ionq.co

Source: IonQ, Inc.

FAQ

How much did IonQ (IONQ) raise in its recent ATM equity offering?

IonQ raised $372.6 million gross ($360 million net) by selling 16,038,460 shares through its ATM equity offering program.

What is IonQ's (IONQ) pro-forma cash balance after the ATM offering?

IonQ's pro-forma cash balance as of December 31, 2024, will exceed $700 million following the ATM offering.

Why did IonQ (IONQ) terminate its ATM equity offering program?

IonQ terminated the program after raising sufficient capital for anticipated needs, citing market disruptions and trading price considerations.

How many shares can Peter Chapman sell from his IonQ (IONQ) holdings?

Peter Chapman may exercise options for up to 2.0 million shares, representing less than 23% of his vested equity interest.