Xanadu Quantum Technologies, a Canadian company focused on photonic quantum computing, has started trading on Nasdaq and the Toronto Stock Exchange (TSX) under the symbol “XNDU”.
The move comes after Xanadu completed its previously announced transaction with Crane Harbor Acquisition Corp., a special purpose acquisition company (SPAC).
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The proceeds from this sale are approximately $302m, and the company also reports ongoing discussions of up to C$390m ($280.6m) in potential funding from the Government of Canada and the Government of Ontario. These resources are expected to be used for further technology development, increased production capacity, and commercialization of Xanadu’s quantum computing platform.
When the deal is completed, Xanadu is valued at $3bn. The pro forma enterprise value is approximately $3.1bn, and the pro forma market capitalization is approximately $3.6bn.
Of the funds raised, approximately $225m is expected to come from the Crane Harbor trust account, excluding redemptions by public shareholders.
An additional $275m was secured through a private equity investment (PIPE) at $10 per share. Over 90% of these PIPE investments came from new investors who were not affiliated with Xanadu.
The company intends to use the funds to accelerate the development and deployment of its photonic quantum computer system. Xanadu aims to achieve a fully fault-tolerant architecture in the coming years, with near-term business performance expected through real-time sales and monetization of its PennyLane software.
Founded in 2016, Xanadu has developed both hardware and software in the field of quantum computing. The firm is leading the development of PennyLane, an open-source quantum computing library that has been integrated into major quantum hardware providers regardless of protocol.
PennyLane is reportedly used by 47% of quantum programmers worldwide, and has been adopted by 143 university partners in 33 countries, including the University of Toronto and Johns Hopkins University.
The development of Xanadu’s technology has included fundamentals in photonic quantum computing. In 2022, the company claimed that its 216-qubit Borealis system completed a computation in two minutes that would have taken modern supercomputers several million years.
Borealis was also the first achievable quantum supremacy machine. The company’s latest system, Aurora, introduced a modular, network-based quantum computing system and achieved real-time error correction with photonics.
Xanadu Founder and CEO Christian Weedbrook said: “Going public on the Nasdaq and TSX marks a defining moment for Xanadu as we open up access to global investors and take a major step in bringing our technology to market.
“As quantum continues to power AI, cybersecurity, and advanced computing, this milestone demonstrates the growing importance of these technologies worldwide.”
Looking ahead, Xanadu plans to develop a fault-tolerant computer with up to 100,000 physical qubits and up to 1,000 logical qubits by 2029. The company’s leadership asserts that photonics serves as a medium compatible with all current quantum technologies, supporting a wide range of applications including networks and secure communications.
In terms of business and research collaborations, Xanadu reports that its systems and software are used by organizations in the defense, aerospace, automotive, pharmaceutical and semiconductor industries.
Named customers include Lockheed Martin, AMD, Rolls-Royce and Applied Materials. Other partnerships include Volkswagen and the US Air Force Research Laboratory among others.
After its transition to the public markets, Xanadu plans to focus on expanding its technology platform and pursuing applications aimed at mass availability within quantum computing.
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