D-Wave Announces Successful Completion of $175 Million At-the-Market Equity Offerings

Rhea-AI Summary

D-Wave Quantum (NYSE: QBTS) has successfully completed two at-the-market equity offerings totaling $175 million in gross proceeds. The recent $75 million ATM Program, implemented on December 9th, achieved an average price of $4.8149 per share, above the three-day VWAP of $4.6625. The company expects to end Q4 FY2024 with at least $160 million in cash.

The funds will support working capital and capital expenditures for D-Wave's technical development and business operations. The company operates the world's largest quantum computer, the 5,000 qubit Advantage™ system, focusing on annealing quantum computing for commercial adoption.

Positive

• Successfully raised $175 million through ATM offerings
• Secured above-market pricing for shares ($4.8149 vs VWAP of $4.6625)
• Strong cash position expected ($160+ million) for Q4 FY2024

Negative

• Significant shareholder dilution through ATM offerings

Insights

Financial Analyst

This substantial $175M capital raise through ATM offerings significantly strengthens D-Wave's balance sheet, with projected quarter-end cash of $160M. The successful completion at an average price of $4.81 per share, above the VWAP of $4.66, demonstrates strong market demand. This funding provides important operational runway and development capital, particularly important for a quantum computing company with significant R&D requirements. The rapid execution of the $75M ATM in just three days at a premium to market prices indicates robust investor confidence in D-Wave's commercial quantum computing strategy and market position with their 5,000-qubit system. This financial buffer substantially reduces near-term funding risks and enables aggressive pursuit of product development and market expansion.

Tech Expert

The funding success comes at a pivotal time in quantum computing commercialization. D-Wave's focus on quantum annealing technology, distinct from gate-based quantum approaches, positions them uniquely in the market. Their 5,000-qubit Advantage™ system represents significant scale in the quantum computing landscape. The secured capital will be important for maintaining their technical leadership and advancing their quantum technology stack. This is particularly important as quantum computing moves from research to commercial applications, with D-Wave's annealing approach already showing practical business value. The funding enables continued development of their quantum infrastructure and software tools, essential for expanding enterprise adoption and maintaining their first-mover advantage in commercial quantum computing.

PALO ALTO, Calif.--(BUSINESS WIRE)-- D-Wave Quantum Inc. (NYSE: QBTS) (“D-Wave” or the “Company”), a leader in quantum computing systems, software, and services, and the world’s first commercial supplier of quantum computers, today announced that it has successfully completed sales of $175 million in gross proceeds of its common stock pursuant to its previously disclosed $100 million and $75 million “at-the-market” equity offering programs (the “ATM Programs”). The $75 million ATM Program, implemented on Monday, December 9^th, was completed at an average price per share of $4.8149. Over that same three-day period, D-Wave stock traded at a Volume Weighted Average Price (“VWAP”) of $4.6625 (per Bloomberg). The Company expects to end the current fiscal 2024 fourth quarter with at least $160 million in cash. The funds were used, and will continue to be used, for working capital and capital expenditures in support of D-Wave’s ongoing technical development efforts and business operations.

“We believe that annealing quantum computing is serving as an important catalyst for the increasing commercial adoption of quantum,” said Dr. Alan Baratz, CEO of D-Wave. “Our 5,000 qubit Advantage™ quantum computer, the largest quantum computer in the world, is helping to drive this adoption, as businesses, researchers, and governments recognize the near-term value we can deliver. We believe this funding substantially improves the company’s financial strength, positioning D-Wave for the future and enabling us to fully execute against our product and go-to-market strategies and roadmaps.”

About D-Wave Quantum Inc.

D-Wave is a leader in the development and delivery of quantum computing systems, software, and services, and is the world’s first commercial supplier of quantum computers—and the only company building both annealing quantum computers and gate-model quantum computers. Our mission is to unlock the power of quantum computing today to benefit business and society. We do this by delivering customer value with practical quantum applications for problems as diverse as logistics, artificial intelligence, materials sciences, drug discovery, scheduling, cybersecurity, fault detection, and financial modeling. D-Wave’s technology has been used by some of the world’s most advanced organizations including Mastercard, Deloitte, Davidson Technologies, ArcelorMittal, Siemens Healthineers, Unisys, NEC Corporation, Pattison Food Group Ltd., DENSO, Lockheed Martin, Forschungszentrum Jülich, University of Southern California, and Los Alamos National Laboratory.

Forward-Looking Statements

Certain statements in this press release are forward-looking, as defined in the Private Securities Litigation Reform Act of 1995. These statements involve risks, uncertainties, and other factors that may cause actual results to differ materially from the information expressed or implied by these forward-looking statements and may not be indicative of future results. These forward-looking statements are subject to a number of risks and uncertainties, including, among others, various factors beyond management’s control, including the risks set forth under the heading “Risk Factors” discussed under the caption “Item 1A. Risk Factors” in Part I of our most recent Annual Report on Form 10-K or any updates discussed under the caption “Item 1A. Risk Factors” in Part II of our Quarterly Reports on Form 10-Q and in our other filings with the SEC. Undue reliance should not be placed on the forward-looking statements in this press release in making an investment decision, which are based on information available to us on the date hereof. We undertake no duty to update this information unless required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241212675277/en/

Media Contact:

D-Wave

Alex Daigle

media@dwavesys.com

Source: D-Wave Quantum Inc.

FAQ

How much did D-Wave (QBTS) raise in its recent ATM offerings?

D-Wave raised a total of $175 million through two ATM offerings: a $100 million and a $75 million program.

What was the average share price for D-Wave's $75M ATM offering in December 2023?

The $75 million ATM Program achieved an average price of $4.8149 per share, above the three-day VWAP of $4.6625.

How much cash will D-Wave (QBTS) have at the end of Q4 FY2024?

D-Wave expects to end Q4 FY2024 with at least $160 million in cash.

What will D-Wave use the ATM offering proceeds for?

The funds will be used for working capital and capital expenditures to support D-Wave's technical development efforts and business operations.

How many qubits does D-Wave's Advantage quantum computer have?

D-Wave's Advantage quantum computer has 5,000 qubits, making it the largest quantum computer in the world.