Trump announces trade deal with EU following months of negotiations
BERKELEY, Calif. - Rigetti Computing, Inc. (NASDAQ:RGTI), known for its advancements in quantum computing, has entered into agreements with institutional investors for a direct offering of 50 million shares priced at $2.00 each, totaling $100 million in gross proceeds. The sale is expected to close on or about November 27, 2024, contingent on customary closing conditions.
The proceeds from this transaction are intended for working capital and general corporate purposes. Rigetti anticipates that the funds acquired, along with its existing cash reserves, will sufficiently support ongoing technological development and its quantum computer business strategy, eliminating the immediate need for further capital raising.
A.G.P./Alliance Global Partners (NYSE:GLP) is serving as the sole placement agent for this offering, which is conducted under an effective shelf registration statement previously filed with the Securities and Exchange Commission (SEC) and declared effective on December 19, 2023.
Rigetti has been a pioneer in the integration of quantum and classical computing systems. Its proprietary infrastructure allows for high-performance integration with both public and private cloud environments, aiming to make quantum computing more practical for a variety of clients including enterprises, government bodies, and research institutions. Since 2017, Rigetti has offered quantum computing services through its Rigetti Quantum (NASDAQ:QMCO) Cloud Services platform.
The company has also made strides in hardware, claiming the development of the industry's first multi-chip quantum processor. Rigetti designs and manufactures these chips at its in-house facility, Fab-1, dedicated to quantum device production.
The offering is made exclusively through a prospectus forming part of the company’s registration statement. When available, the prospectus supplement and accompanying prospectus related to the offering may be obtained from the SEC's website or directly from A.G.P./Alliance Global Partners.
This news is based on a press release statement and contains forward-looking statements regarding the offering's completion, expected proceeds, and Rigetti's financial position following the offering. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected.
In other recent news, Rigetti Computing, Inc. reported its third-quarter earnings for 2024, revealing a fall in revenue to $2.4 million from $3.1 million in Q3 2023 and a decrease in gross margins to 51%. Despite these financial hurdles, the company announced significant advancements in quantum computing, including plans for a new 36-qubit system by mid-2025 and a system with over 100 qubits by the end of 2025. Rigetti's collaborations with Riverlane and NVIDIA (NASDAQ:NVDA) are central to its strategy for quantum error correction and hybrid computing. In addition, the company is focusing on securing government contracts and is optimistic about the National Quantum Initiative Reauthorization Act. Rigetti's CEO, Dr. Subodh Kulkarni, expressed optimism about increased government funding and the potential to participate in a $300 million DARPA project. The company's financial position remains solid, with sufficient cash to support operations through early 2026.
InvestingPro Insights
Rigetti Computing's recent $100 million direct offering comes at a time when the company's financial metrics and market performance paint an intriguing picture. According to InvestingPro data, Rigetti's market capitalization stands at $528.81 million, reflecting investor interest in the quantum computing sector despite the company's current profitability challenges.
InvestingPro Tips highlight that Rigetti holds more cash than debt on its balance sheet, which aligns with the company's statement that the new funds, combined with existing cash reserves, will support ongoing operations without immediate need for further capital raising. This financial cushion could provide Rigetti with the runway needed to advance its quantum computing technology.
The company's stock has shown remarkable momentum, with InvestingPro data revealing a 190.73% price return over the past three months and a 161.9% return over the last year. This strong performance suggests growing investor confidence in Rigetti's potential, despite the fact that analysts do not anticipate the company will be profitable this year, as noted in another InvestingPro Tip.
It's worth noting that Rigetti's revenue for the last twelve months was $11.89 million, with a concerning revenue decline of 19.06% over the same period. This context makes the recent $100 million offering even more crucial for the company's growth strategy and technological development efforts.
For investors seeking a deeper understanding of Rigetti's financial health and market position, InvestingPro offers 14 additional tips, providing a comprehensive analysis to inform investment decisions in this volatile but potentially revolutionary sector.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.