IonQ announces offering of common stock and warrants on NYSE

IonQ, Inc. (NYSE:IONQ), whose stock has surged over 650% in the past year and recently traded near its 52-week high of $84.64, disclosed Monday that it has entered into an underwriting agreement with J.P. Morgan Securities LLC for an offering of its common stock and warrants. According to InvestingPro data, the quantum computing company has seen remarkable momentum, with its market capitalization reaching $24.4 billion despite operating with significant losses. The agreement, signed October 10, provides for the sale of 16,500,000 shares of common stock and 5,005,400 pre-funded warrants to purchase an equal number of shares, as well as 43,010,800 Series B warrants to purchase shares of common stock.

Each share of common stock is offered together with two Series B warrants at a combined public price of $93.00. Each pre-funded warrant is also offered with two Series B warrants at the same combined price, with a nominal exercise price of $0.0001 per share for the pre-funded warrants. The securities will be issued separately and not as a unit.

The Series B warrants are exercisable immediately with an exercise price of $155.00 per share and will remain exercisable for seven years from the issuance date. This pricing reflects ambitious growth expectations, though InvestingPro analysis indicates that 5 analysts have recently revised their earnings expectations downward for the upcoming period, with the company not expected to achieve profitability this year. The pre-funded warrants are also exercisable immediately at $0.0001 per share. Both types of warrants are subject to adjustment in the event of certain stock dividends, splits, combinations, reclassifications, or similar corporate actions.

Under the agreements, holders of warrants are limited to beneficial ownership of no more than 4.99% of IonQ’s outstanding common stock after exercise, though this cap may be increased or decreased by the holder within specified limits.

The warrant agreements include provisions for adjustments in the event of fundamental transactions, such as mergers or asset sales. In such cases, holders may be entitled to receive securities or other property equivalent to what they would have received if the warrants were exercised prior to the transaction. For Series B warrants, holders may request the company or its successor to purchase the warrants for cash based on a calculation defined in the agreement.

Holders of the warrants do not have voting or other rights as common stockholders until the warrants are exercised. The closing of the offering is expected to occur on Tuesday.

This information is based on a press release statement included in IonQ’s Form 8-K filing with the Securities and Exchange Commission.

In other recent news, IonQ has announced several significant developments. The company reported a $2 billion equity investment from an entity managed by Heights Capital Management, Inc., with the offering priced at a premium. This transaction includes common stock and warrants, with some warrants priced at a 100% premium to the closing price on October 9. Additionally, IonQ has completed the acquisition of Vector Atomic, a quantum sensing company, in an all-stock deal. This acquisition enhances IonQ’s quantum portfolio by adding precision atomic clocks and other advanced technologies. IonQ also demonstrated a breakthrough in quantum chemistry simulations, achieving more accurate results than classical computing methods. This advancement was made in collaboration with a Global 1000 automotive manufacturer. These developments highlight IonQ’s ongoing efforts to expand its capabilities and partnerships in the quantum computing field.

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