Quantum Computing Inc. Announces $500 Million Oversubscribed Private Placement of Common Stock Priced at the Market Under Nasdaq Rules

Rhea-AI Summary

Quantum Computing Inc. (NASDAQ:QUBT) has secured a $500 million private placement of common stock through an oversubscribed offering priced at market under Nasdaq rules. The company will issue 26,867,276 shares to institutional investors, with participation from existing shareholders and a new prominent global alternative asset manager.

The offering, expected to close around September 24, 2025, will boost QCi's total cash position to approximately $850 million. This brings the company's total capital raised since November 2024 to about $900 million. The proceeds will fund commercialization efforts, strategic acquisitions, expansion of sales and engineering teams, and general corporate purposes.

Positive

• Substantial $500 million capital raise through oversubscribed offering
• Strong investor confidence demonstrated by participation from existing shareholders and new prominent global asset manager
• Offering priced at a premium compared to four recent offerings
• Total cash position will increase to approximately $850 million
• Significant funding for growth initiatives and strategic acquisitions

Negative

• Potential dilution for existing shareholders due to issuance of 26.87 million new shares
• Securities issued are currently unregistered and have trading restrictions

Insights

Investment Banker

QCi's massive $500M capital raise at market price strengthens its balance sheet to $850M, accelerating growth initiatives.

Quantum Computing Inc's latest $500 million private placement represents a significant capital influx for the quantum technology company, bringing its total cash position to approximately $850 million. This oversubscribed offering was priced at market under Nasdaq rules – a striking departure from the typical discounted pricing seen in private placements, signaling strong investor confidence. The participation of existing large shareholders alongside a new "preeminent global alternative asset manager" indicates institutional conviction in QCi's business trajectory.

The company has raised an impressive $900 million since November 2024, with this latest round coming at what the CEO described as "a substantial premium" to their four previous offerings. This pricing progression suggests investors are placing increasingly higher valuations on QCi's prospects.

Strategically, this capital infusion provides QCi with substantial financial flexibility to execute several growth initiatives simultaneously: accelerating commercialization efforts, pursuing strategic acquisitions, expanding their technical and sales teams, and strengthening manufacturing capabilities. For a company in the capital-intensive quantum computing sector, this war chest creates a significant competitive advantage in talent acquisition, technology development, and potential consolidation opportunities.

The completion of this financing substantially de-risks QCi's execution timeline, providing runway to achieve commercial milestones without near-term capital constraints. This financial stability should allow management to focus on operational execution rather than fundraising activities.

Quantum Technology Expert

QCi's $500M fundraising provides exceptional financial foundation to commercialize integrated photonics and quantum optics technologies.

Quantum Computing Inc.'s successful $500 million raise represents an extraordinary financial achievement for a specialized quantum technology company. QCi positions itself specifically as an "integrated photonics and quantum optics technology company," which indicates their focus on photonic quantum computing approaches rather than superconducting or ion trap methods used by competitors.

The substantial capital infusion creates a uniquely advantageous position in the quantum technology landscape. Quantum hardware development requires significant investment in specialized equipment, materials research, error correction techniques, and engineering talent. With approximately $850 million in cash post-closing, QCi has secured resources to potentially overcome the significant technical challenges in scaling quantum systems toward practical applications.

The company's stated intention to accelerate commercialization suggests they may be approaching or have achieved technical milestones that warrant bringing products to market. In the quantum technology sector, commercialization typically involves transitioning from proof-of-concept demonstrations to developing more robust systems that can deliver quantum advantages for specific use cases.

Their focus on "strategic acquisitions" is particularly noteworthy in the fragmented quantum technology ecosystem. Many smaller companies have developed valuable intellectual property or engineering talent in specialized areas like quantum control systems, cryogenics, photonic chip fabrication, or quantum algorithms. This capital allows QCi to potentially acquire complementary technologies to enhance their core photonics platform or expand their application portfolio.

The expansion of sales personnel alongside engineering teams suggests QCi is preparing to scale both their technology development and market reach simultaneously – an approach that could accelerate adoption if their quantum technology delivers practical advantages.

• The offering is being led by several large existing shareholders alongside a first-time investment from a preeminent global alternative asset manager
  
  
• Company's total cash position expected to be approximately $850 million following closing

HOBOKEN, N.J., Sept. 21, 2025 /PRNewswire/ -- Quantum Computing Inc. ("QCi" or the "Company") (Nasdaq: QUBT), an innovative, integrated photonics and quantum optics technology company, today announced that it has entered into securities purchase agreements with institutional investors for the purchase and sale of 26,867,276 shares of common stock in an oversubscribed private placement priced at the market under Nasdaq rules. The offering is expected to result in gross proceeds of $500 million, before deducting offering expenses. The closing of the offering is expected to occur on or about September 24, 2025, subject to the satisfaction of customary closing conditions.

Participants in the private placement include several large existing shareholders alongside a first-time investment from a preeminent global alternative asset manager.

The Company intends to use the net proceeds from the offering to accelerate commercialization efforts, strategic acquisitions, expand sales and engineering personnel, working capital, and general corporate purposes.

Titan Partners Group, a division of American Capital Partners, is acting as the sole placement agent for the offering.

"This successful $500 million offering, led by strong support from both new and existing leading institutional investors, is priced at a substantial premium to our four recent offerings, bringing our total gross capital raised since November 2024 to approximately $900 million," said Dr. Yuping Huang, CEO and Chairman of the Board of QCi. "This financing further fortifies our financial position and enables us to execute our multi-year growth plan, including the acceleration of commercialization efforts, strategic acquisitions, the expansion of sales and engineering personnel, and the strengthening of our manufacturing capabilities."

The securities issued in the private placement described above have not been registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. The Company has agreed to file a resale registration statement with the SEC for purposes of registering the resale of the shares of common stock issued in connection with the private placement.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Quantum Computing Inc.

Quantum Computing Inc. ("QCi" or the "Company") (Nasdaq: QUBT) is an innovative, integrated photonics and quantum optics technology company that provides accessible and affordable quantum machines and foundry services for the production of photonic chips based on thin-film lithium niobate (TFLN). QCi's products are designed to operate at room temperature and low power at an affordable cost. The Company's portfolio of core technologies and products offer unique capabilities in the areas of high-performance computing, artificial intelligence, and cybersecurity, as well as remote sensing applications.

Forward-Looking Statements

This press release contains forward-looking statements as defined within Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements, generally identified by terms such as "may," "will," "expect," "believe," "anticipate," "estimate," "intends," "goal," "objective," "seek," "attempt," "aim to," or variations of these or similar words, involve risks and uncertainties because they relate to events and depend on circumstances that will occur in the future. Those statements include statements regarding and including statements regarding the expected closing of the offering, QCi's use of the net proceeds from the offering and the anticipated benefits that the Company may realize from the offering. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, including the timing of orders and revenue, and the outcome of ongoing collaborations and demonstration projects with certain U.S. government agencies, academic institutions and commercial customers, and that actual results may differ materially from those contemplated by such forward-looking statements. Except as required by federal securities law, QCi undertakes no obligation to update or revise forward-looking statements to reflect changed conditions.

Company Contact:

Rosalyn Christian/John Nesbett

IMS Investor Relations

qci@imsinvestorrelations.com

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SOURCE Quantum Computing Inc.

FAQ

How much did Quantum Computing (QUBT) raise in their latest private placement?

Quantum Computing raised $500 million through an oversubscribed private placement of common stock priced at market under Nasdaq rules.

What will QUBT use the $500 million private placement proceeds for?

The proceeds will be used to accelerate commercialization efforts, fund strategic acquisitions, expand sales and engineering personnel, provide working capital, and support general corporate purposes.

How many shares will Quantum Computing (QUBT) issue in the private placement?

Quantum Computing will issue 26,867,276 shares of common stock to institutional investors.

What is Quantum Computing's (QUBT) total cash position after the private placement?

Following the offering, QUBT's total cash position is expected to be approximately $850 million.

Who are the investors in QUBT's $500 million private placement?

The offering includes several large existing shareholders and a first-time investment from a preeminent global alternative asset manager.

When will QUBT's private placement close?

The private placement is expected to close on or about September 24, 2025, subject to customary closing conditions.