AMD participates! Xanadu plans to go public in the United States through SPAC, aiming to become the first stock in pure photonic quantum computing.

Canadian quantum computing company Xanadu Quantum Technologies, Inc. recently announced that it will debut on the Nasdaq through a merger with special purpose acquisition company (SPAC) Crane Harbor Acquisition (CHAC.US). The pre-investment equity valuation of Xanadu in this transaction is $3 billion, with the post-merger enterprise value of the new company being approximately $3.1 billion, corresponding to a market capitalization of $3.6 billion. According to a statement released on Monday, if Crane Harbor public shareholders do not exercise their redemption rights, the merged company will receive approximately $225 million from a trust account. At the same time, through a simultaneous private placement (PIPE), institutional investors participating in the transaction will subscribe to shares of the new company at a price of $10 per share, bringing in $275 million in funding. It is worth noting that over 90% of the funding for this PIPE financing comes from new investors who do not currently hold shares in Xanadu, including AMD, BMO Global Asset Management, CIBC Asset Management, MMCAP Ventures, Planet First Partners and Polar Asset Management Partners. The company stated that the net proceeds from this transaction will be used to accelerate the research and deployment of photonic quantum computer systems, ultimately achieving full fault tolerance and commercializing runtime sales and the PennyLane software for subsequent commercial deployment. CEO Christian Weedbrook stated in an interview that the funding will be used to expand hardware infrastructure, with the ultimate goal of building a quantum data center. "Quantum computing stocks in the public market are currently very popular, and they also initially went public through the SPAC method," Weedbrook said. "Therefore, we hope to tap into this market enthusiasm." For example, D-Wave Quantum (QBTS.US) based in British Columbia has seen its stock price rise by approximately 230% since its listing on the New York Stock Exchange on August 8, 2022. Quantum computers are widely believed to have the potential to surpass the computational limits of classical computers. This year, the technology has transitioned from the theoretical exploration stage to commercial applications, attracting high attention from tech giants: IBM and Microsoft Corporation continue to increase their investments, Alphabet Inc. Class C announced breakthrough algorithm progress last month, and financial giant JPMorgan Chase has included quantum computing in its $1.5 trillion technology investment strategy this October. Founded in 2016 and headquartered in Toronto, Xanadu is unique in developing a quantum computer based on photonic particles, as opposed to the superconducting circuits or trapped ion techniques. The company's system can operate at room temperature, without the need for expensive cryogenic cooling systems that many other quantum computing platforms rely on. Xanadu's clients are mainly in the pharmaceutical, artificial intelligence (AI) and materials development sectors. However, Weedbrook predicts that as quantum computing becomes more widely applied, the client base will continue to expand. According to the terms of the transaction, existing Xanadu shareholders and management will not receive cash proceeds, and their holdings will be converted into equity in the new company. The transaction has been approved by both boards of directors, and after the transaction is completed, the new company's shares will be traded simultaneously on the Nasdaq and the Toronto Stock Exchange. Xanadu also emphasizes that after the merger, it will become the first and only publicly traded company in the pure photonics quantum computing field.