Xanadu Quantum Technologies, a Canadian company focused on photonic quantum computing, began trading on both the Nasdaq and Toronto Stock Exchange (TSX) under the ticker symbol “XNDU.”
The move comes after Xanadu finalised its previously announced business combination with Crane Harbor Acquisition Corp., a special purpose acquisition company (SPAC).
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Proceeds raised through this transaction amount to approximately $302m, with the company also reporting ongoing negotiations for up to C$390m ($280.6m) in potential funding from the Government of Canada and Government of Ontario. These resources are expected to be used for further technology development, increased manufacturing capacity, and advancing commercialisation of Xanadu’s quantum computing platform.
With the completion of the transaction, Xanadu is valued at a pre-money rollover equity value of $3bn. The pro forma enterprise value stands at approximately $3.1bn, and the pro forma market capitalisation is around $3.6bn.
Of the funds raised, about $225m is expected from Crane Harbor’s trust account, subject to no redemptions by public stockholders.
An additional $275m was secured via a private investment in public equity (PIPE) transaction at $10 per share. Over 90% of this PIPE investment is from new investors not previously associated with Xanadu.
The company intends to deploy these proceeds to expedite development and deployment of its photonic quantum computer systems. Xanadu aims to achieve fully fault-tolerant architectures in the coming years, with near-term commercial traction anticipated through run time sales and monetisation of its PennyLane software stack.
Founded in 2016, Xanadu has developed both hardware and software in the quantum computing sector. The firm leads development of PennyLane, an open-source quantum computing library that is already integrated across major quantum hardware providers irrespective of modality.
PennyLane is reportedly used by up to 47% of quantum programmers worldwide, and adopted by 143 university partners in 33 countries, including University of Toronto and Johns Hopkins University.
Xanadu’s technical development has included milestones in photonic quantum computing. In 2022, the company claimed that its 216-qubit Borealis system completed a computational task in two minutes that would have required contemporary supercomputers several million years.
Borealis was also the first cloud-accessible quantum supremacy machine. The company’s most recent system, Aurora, introduced a modular, networked approach to quantum computing and achieved real-time error correction decoding via photonics.
Xanadu founder and CEO Christian Weedbrook said: “Going public on Nasdaq and the TSX marks a defining moment for Xanadu as we open the door to a broader global investor base and take a significant step forward in bringing our technology to market. Our dual listing strengthens our platform for growth and positions us to scale with greater speed and ambition, while continuing to deliver long-term value to our shareholders.
“As quantum becomes increasingly relevant to AI, cybersecurity, and advanced computing, this milestone reflects the growing importance of these technologies globally.”
Looking ahead, Xanadu projects that by 2029 it will develop a fault-tolerant quantum computer featuring up to 100,000 physical qubits and up to 1,000 logical qubits. Company leadership asserts that photonics serves as a compatible medium across all current quantum modalities, supporting a range of applications including networking and secure communications.
In terms of commercial adoption and research partnerships, Xanadu reports that its systems and software are being used by organisations in defence, aerospace, automotive, pharmaceuticals and semiconductors.
Named customers include Lockheed Martin, AMD, Rolls-Royce and Applied Materials. Additional collaborations involve Volkswagen and the US Air Force Research Laboratory among others.
Following its transition to public markets, Xanadu plans to focus on scaling its technology platform and pursuing applications intended for broad accessibility within the field of quantum computing.
