D-Wave completes $400 million stock offering at premium price

Published 01/07/2025, 12:10
D-Wave completes $400 million stock offering at premium price

NEW YORK - Quantum computing company D-Wave Quantum Inc. (NYSE:QBTS) has completed a $400 million "at-the-market" equity offering, selling shares at an average price of $15.18 per share, the company announced Tuesday. According to InvestingPro data, the company maintains strong financial health with a current ratio of 20.7x and holds more cash than debt on its balance sheet.

The offering, which ran from June 11 to June 27, achieved a 149% premium compared to the company’s previous $150 million offering completed in January, which had an average price of $6.10 per share.

With the completion of this financing, D-Wave’s cash balance now stands at approximately $815 million, according to the company’s press release statement.

D-Wave plans to use the proceeds primarily for strategic acquisitions, working capital, capital expenditures, and general corporate purposes.

"With what we believe to be the strongest balance sheet of any public, independent quantum computing company, we intend to invest in acquisitions and programs that will enable us to expand our already significant lead," said Dr. Alan Baratz, CEO of D-Wave.

D-Wave describes itself as the world’s first commercial supplier of quantum computers and the only company building both annealing and gate-model quantum computing systems. The company provides quantum computers both on-premises and via cloud access.

The company reports that more than 100 organizations use its technology for various applications including optimization, artificial intelligence, and research, with over 200 million problems submitted to its quantum systems to date.

In other recent news, D-Wave Quantum Inc. announced it has raised approximately $95.8 million through the exercise of warrants to purchase shares of its common stock. This financial move, detailed in a recent SEC filing, follows D-Wave’s merger with DPCM Capital, Inc. completed in August 2022. Additionally, D-Wave has signed a memorandum of understanding with Yonsei University and Incheon Metropolitan City, aiming to advance quantum computing adoption in South Korea. This agreement includes plans for collaborative research and the acquisition of a D-Wave Advantage2 quantum computing system, marking a significant step in expanding the region’s quantum computing infrastructure.

Benchmark has raised its price target for D-Wave Quantum Inc. from $14 to $20, maintaining a Buy rating, citing the strategic importance of the South Korea agreement. Meanwhile, B.Riley has reaffirmed its Buy rating with a price target of $13, following the announcement of the general availability of D-Wave’s Advantage2 quantum computer. The new machine offers enhanced performance features, including improved qubit connectivity and reduced noise, supporting large-scale problem-solving capabilities. These developments underscore D-Wave’s ongoing efforts to solidify its position in the quantum computing market.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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