Quantum Computing Inc. (NASDAQ:QUBT) shares are trading lower in the premarket session on Wednesday.
Today, the firm announced a significant step in strengthening its financial position through a dual securities offering. The company entered into securities purchase agreements to sell a total of 10 million shares of common stock.
Of these, 1.54 million shares will be sold at a price of $5.00 per share in a registered direct offering with institutional investors, while the remaining 8.46 million shares will be sold in a concurrent private placement at the same price.
The combined offerings are expected to generate gross proceeds of $50 million, before expenses, with the closing anticipated on December 12, 2024, pending customary conditions.
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Quantum Computing said it plans to use the proceeds to support its working capital needs and general corporate purposes.
A significant portion of the funds will be directed toward advancing the company’s quantum technologies, including the continued buildout of its U.S.-based thin film lithium niobate (TFLN) Photonic Chip Foundry in Tempe, Arizona. The facility is on track to be completed in the first quarter of 2025.
Chris Boehmler, CFO of QCi, expressed optimism about the offerings, noting that the additional funds will strengthen the company’s balance sheet and support ongoing investments in research, development, and manufacturing.
This will help drive revenue, scale production, and accelerate progress on their quantum optimization machines and reservoir computers.
Price Action: QUBT shares are trading lower by 5.51% to $7.20 premarket at last check Wednesday.
Image via Shutterstock.
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