D-Wave Receives Notice of Non-Compliance with NYSE Trading Share Price Listing Rule

Rhea-AI Summary

D-Wave Quantum Inc. (NYSE: QBTS) announced it received notice from the NYSE on March 16, 2023, for non-compliance with listing standards, as its stock averaged below $1.00 for 30 days ending March 15, 2023. The company intends to remedy this deficiency within six months, regaining compliance if the stock closes above $1.00 at the end of any month during the cure period. D-Wave is considering actions like a reverse stock split, which would require shareholder approval. Throughout this process, its stock will remain listed and continue to trade on the NYSE, subject to compliance with other standards.

Positive

• Company intends to cure stock price deficiency and return to compliance with NYSE listing standards.
• Stock remains listed on the NYSE during the cure period.

Negative

• Stock average closing price fell below $1.00, leading to non-compliance notice from NYSE.
• Potential need for a reverse stock split may indicate financial instability.

Intends to cure the deficiency and return to compliance with NYSE standard

BURNABY, British Columbia & PALO ALTO, Calif.--(BUSINESS WIRE)-- D-Wave Quantum Inc. (NYSE: QBTS) (the "Company"), a leader in quantum computing systems, software, and service, and the only commercial provider building both annealing and gate-model quantum computers, today announced that it received notice from the New York Stock Exchange (the “NYSE”) on March 16, 2023 that it is not in compliance with Section 802.01C of the NYSE Listed Company Manual because, as of March 15, 2023, the average closing price of the Company’s common stock was less than $1.00 over a consecutive 30 trading-day period. The notice does not result in the immediate delisting of the Company’s common stock from the NYSE.

On March 20, 2023, the Company notified the NYSE that it intends to cure the stock price deficiency and to return to compliance with the NYSE continued listing standard. The Company can regain compliance at any time within the six-month period following receipt of the NYSE notice if on the last trading day of any calendar month during the cure period the Company has a closing share price of at least $1.00 and an average closing share price of at least $1.00 over the 30 trading-day period ending on the last trading day of that month.

Under the NYSE’s rules, if the Company determines that, if necessary, it will cure the stock price deficiency by taking an action that will require stockholder approval, it must so inform the NYSE in the above referenced notification and the price condition will be deemed cured if the price promptly exceeds $1.00 per share, and the price remains above that level for at least the following 30 trading days. The Company intends to consider available alternatives, including but not limited to a reverse stock split, that are subject to shareholder approval.

The Company’s common stock will continue to be listed and trade on the NYSE during this period, subject to the Company’s compliance with other NYSE continued listing standards.

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 is being used by some of the world’s most advanced organizations, including Volkswagen, 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

This press release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. These statements express a belief, expectation or intention and are generally accompanied by words that convey projected future events or outcomes. For example, statements regarding the Company’s intention to consider alternatives to cure the NYSE continued listing requirement deficiency are forward-looking statements. We have based these forward-looking statements on our current expectations and assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions and expected future developments, as well as other factors we believe are appropriate under the circumstances. However, whether actual results and developments will conform with our expectations and predictions is subject to a number of risks and uncertainties, many of which are beyond our control, including the Company’s ability to regain compliance with the continued listing standards of the NYSE within the applicable cure period, the Company’s ability to continue to comply with applicable listing standards of the NYSE and the other important factors set forth under the caption “Risk Factors” in the Company’s Registration Statement on Form S-1 filed with the Securities and Exchange Commission (the “SEC”) on February 13, 2023, and the Company’s other reports filed with the SEC. All of the forward-looking statements made in this press release are qualified by these cautionary statements. The actual results or developments anticipated may not be realized or, even if substantially realized, they may not have the expected consequences to or effects on our Company or our business or operations. Such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230321005379/en/

Investor Contact:

Kevin Hunt

ir@dwavesys.com

Media Contact:

Michelle Maggs

media@dwavesys.com

Source: D-Wave Quantum Inc.

FAQ

What caused D-Wave Quantum Inc. (QBTS) to receive a non-compliance notice from the NYSE?

D-Wave Quantum Inc. received a non-compliance notice because its stock price averaged below $1.00 for 30 consecutive trading days.

What actions is D-Wave Quantum Inc. (QBTS) planning to address the NYSE deficiency?

D-Wave intends to consider various alternatives, including a reverse stock split, to cure the stock price deficiency.

How long does D-Wave Quantum Inc. have to comply with NYSE listing standards?

D-Wave has six months from the notice date to regain compliance with the NYSE listing standards.

Will D-Wave Quantum Inc. (QBTS) be delisted from the NYSE immediately?

No, D-Wave's stock will continue to be listed and trade on the NYSE during the compliance period.

What does a reverse stock split mean for D-Wave Quantum Inc. (QBTS)?

A reverse stock split would consolidate shares to increase the stock price, helping D-Wave regain compliance with the NYSE.