Quantum Computing, Inc. Announces Concurrent Offerings of Common Stock for Aggregate Proceeds of $50 Million

Rhea-AI Summary

Quantum Computing Inc. (QUBT) has announced two concurrent stock offerings totaling $50 million. The company is selling 1,540,000 shares through a registered direct offering and 8,460,000 shares through a private placement, both priced at $5.00 per share. The offerings are expected to close around December 12, 2024.

The proceeds will be used for working capital and general corporate purposes, including the development of quantum technologies and the buildout of their TFLN Photonic Chip Foundry in Tempe, Arizona, which is scheduled for completion in Q1 2025. Titan Partners Group is acting as the sole placement agent for these offerings.

Positive

• Secured $50 million in new funding through stock offerings
• Foundry development in Tempe remains on schedule for Q1 2025 completion
• Strengthened balance sheet for operational expansion and R&D investment

Negative

• Significant shareholder dilution through issuance of 10 million new shares
• Heavy reliance on equity financing for operations and development

Insights

Financial Analyst

This $50M capital raise through concurrent offerings signals a significant financial move for QUBT. The pricing at $5.00 per share represents a substantial premium, showcasing strong investor confidence. The structure, combining a registered direct offering of 1.54M shares with a private placement of 8.46M shares, demonstrates strategic financial planning. The capital infusion will strengthen QUBT's balance sheet and fund critical initiatives, particularly the TFLN Photonic Chip Foundry development. However, shareholders should note potential dilution effects from the additional 10M shares being issued. The timing aligns with the company's growth trajectory, especially with the foundry completion targeted for Q1 2025, potentially accelerating revenue generation capabilities.

Tech Expert

The capital raise strategically positions QUBT to advance its quantum computing infrastructure, particularly the TFLN Photonic Chip Foundry. This facility represents a important step in developing domestic quantum computing capabilities, especially significant given the current focus on U.S.-based semiconductor manufacturing. The emphasis on thin film lithium niobate technology indicates a focus on high-performance, room-temperature quantum solutions - a key differentiator in the quantum computing space. The investment in manufacturing capabilities could accelerate the commercialization of their Dirac quantum optimization machines and reservoir computers, potentially establishing QUBT as a leading player in accessible quantum computing solutions.

HOBOKEN, N.J., Dec. 10, 2024 /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 1,540,000 shares of common stock at a purchase price of $5.00 per share, pursuant to a registered direct offering. In a concurrent private placement, the Company entered into securities purchase agreements for the purchase and sale of an additional 8,460,000 shares of its common stock at the same price. The offerings are expected to result in aggregate gross proceeds of $50 million, before deducting offering expenses. The closing of the offerings is expected to occur on or about December 12, 2024, subject to the satisfaction of customary closing conditions.

The Company intends to use the net proceeds from the offerings for working capital and general corporate purposes. With the anticipated net proceeds, combined with existing cash reserves, the Company expects to have sufficient resources to continue advancing the development of its quantum technologies, including not only the initial buildout but also the potential expansion of its U.S.-based thin film lithium niobate (TFLN) Photonic Chip Foundry in Tempe, Arizona, which remains on track for completion in Q1 2025.

"We are pleased to have successfully priced these offerings, which, when closed, will further bolster the Company's balance sheet and strengthen our long-term investment in R&D and manufacturing capabilities," said Mr. Chris Boehmler, Chief Financial Officer (CFO) of QCi. "These additional funds will further support the operational ramp-up of our TFLN Photonic Chip Foundry in Tempe, Arizona, enabling the Company to drive revenue generation, scale production, and accelerate the advancement of our high-performance computing products, including our Dirac line of quantum optimization machines and our reservoir computers."

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

The securities in the registered direct offering described above are being offered pursuant to an effective shelf registration statement on Form S-3 (File No. 333-268064) previously filed with the U.S. Securities and Exchange Commission (the "SEC") and declared effective on November 8, 2022. The offering of securities in the registered direct offering is made only by means of a prospectus, and includes a prospectus supplement, forming a part of the effective registration statement. A final prospectus supplement and accompanying prospectus related to the registered direct offering will be filed with the SEC and will be available on the SEC's website located at http://www.sec.gov. Electronic copies of the final prospectus supplement and accompanying prospectus may be obtained, when available, by contacting Titan Partners Group LLC, a division of American Capital Partners, LLC, 4 World Trade Center, 29th Floor, New York, NY 10007, by phone at (929) 833-1246 or by email at prospectus@titanpartnersgrp.com. 

The securities issued in the concurrent 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 concurrent 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 to the world today. QCi products are designed to operate at room temperature and low power at an affordable cost. The Company's portfolio of core technology and products offer distinctive capabilities in the areas of high-performance computing, artificial intelligence, 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 and QCi's use of the net proceeds 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, without limitation, the risks and uncertainties associated with market conditions and the satisfaction of customary closing conditions related to the offering, as well as risks and uncertainties inherent in the QCi's business, including the timing of commencing production at our TFLN fabrication facility, the timing of the advancement of our high-performance computing products (including our Dirac line of quantum optimization machines and our reservoir computers), and the outcome of ongoing collaborations and demonstration projects with certain U.S. government agencies, 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.

 

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SOURCE Quantum Computing Inc.

FAQ

How much did QUBT raise in their December 2024 stock offerings?

QUBT raised $50 million through two concurrent stock offerings, selling shares at $5.00 per share.

When is QUBT's Tempe TFLN Photonic Chip Foundry expected to be completed?

The TFLN Photonic Chip Foundry in Tempe, Arizona is expected to be completed in Q1 2025.

How many shares is QUBT selling in their December 2024 offerings?

QUBT is selling a total of 10 million shares: 1,540,000 shares in a registered direct offering and 8,460,000 shares in a private placement.

What is the price per share for QUBT's December 2024 stock offerings?

Both the registered direct offering and private placement shares are priced at $5.00 per share.

What will QUBT use the proceeds from the December 2024 offerings for?

The proceeds will be used for working capital, general corporate purposes, quantum technologies development, and the buildout of their TFLN Photonic Chip Foundry.