U.S. agency invests over $50 billion to compete with China globally
- Quantum Computing Inc. has entered into agreements for the sale of 1,540,000 shares at $5.00 per share.
- The concurrent offerings are expected to yield $50 million in gross proceeds.
- These funds will support QCi’s development of quantum technologies and operations at their Arizona photonic chip foundry.
Quantum Computing Inc. (QCi), based in Hoboken, New Jersey, announced on December 10, 2024, that it has entered into securities purchase agreements with institutional investors for selling 1,540,000 shares of common stock at a price of $5.00 per share. The transaction is expected to result in gross proceeds of $50 million before deducting expenses, with closing anticipated on December 12, 2024, pending customary conditions. The net proceeds from this offering will be used for working capital and general corporate purposes, ensuring the company can continue to advance its quantum technology developments. QCi plans to combine the new funds with existing cash reserves to support the ongoing development of its products, particularly enhancing its lithium niobate photonic chip foundry based in Tempe, Arizona. This site is crucial for ramping up operations related to high-performance computing technologies that QCi has been developing over the years. The company expects this expansion of the foundry to complete by the first quarter of 2025, further solidifying its market position within the growing sector of quantum computing. Mr. Chris Boehmler, Chief Financial Officer of Quantum Computing Inc., expressed optimism regarding these offerings, highlighting that the additional funds will strengthen the company’s investment in research and development capabilities. This capital will also facilitate the operational ramp-up of their thin film lithium niobate (TFLN) chip production capacity. The offerings are deemed significant as they provide necessary resources for QCi to expand its ongoing projects and optimize product offerings. The offerings presented by QCi are being managed by Titan Partners Group and fall under a registered direct offering pursuant to an existing effective shelf registration statement. Notably, the shares offered in the concurrent private placement have not been registered under the Securities Act, which is standard in such offerings. This strategic financial maneuvering is critical for Quantum Computing Inc., particularly in an environment where competition in the quantum technology space is fierce, driven by rising demand and innovation in high-tech solutions.