Toronto quantum computing firm Xanadu Quantum Technologies has officially gone public.
Xanadu began trading on the Toronto Stock Exchange (TSX) and Nasdaq on Friday under the ticker XNDU, making it the first Canadian technology company to debut on the TSX since 2021. Xanadu achieved this by merging with Philadelphia-based special purpose acquisition company (SPAC) Crane Harbor Acquisition Corp.
Xanadu is receiving $302 million USD in gross proceeds after redemptions, below its initial estimate of up to $500 million.
Xanadu opened on the TSX and Nasdaq trading at $10 CAD and $10 USD per share, respectively, and is hovering around that price at time of publication. The companyâs debut also makes it the first pure-play photonic quantum computing business to go public.
As Xanadu founder and CEO Christian Weedbrook told BetaKit last month, he hopes that his company and fellow Canadian deep tech firm General Fusionâwhich struck its own SPAC deal in Januaryâmark the start of a new trend that reverses the Canadian tech initial public offering (IPO) drought.
Xanadu announced today that the SPAC transaction gives it approximately $302 million USD in gross proceeds, much lower than the up to $500 million USD amount it initially estimated when the $3.6-billion USD deal was first announced in November.
That $500-million USD figure consisted of $225 million USD from Crane Harborâs trust account (assuming no redemptions by the SPACâs public stockholders) and $275 million from AMD, the asset management arms of BMO and CIBC, Bessemer Venture Partners, Georgian Partners, and OMERS Ventures, among others.
Xanadu plans to use this funding to advance its tech, expand its manufacturing capabilities, and accelerate its commercialization plans. It aims to build a quantum data centre by 2029.
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Founded in 2016, Xanadu is working to use photonics-based quantum computing to perform exceptionally fast and complex computations at room temperature, quicker than traditional computers. Weedbrook has said quantum computers could be applied to help discover new drugs or create more powerful electric vehicle batteries.
Xanadu claims its approach offers a few advantages, including the ability to leverage modern chip manufacturing facilities and existing optical components like fibre optics.
Quantum tech has been generating significant interest among public market investors lately. It could also have a significant impact on defenceâas evidenced by Xanaduâs participation in major research programs in both Canada and the United States.
Xanadu is also in talks with the Canadian and Ontario governments regarding funding to establish advanced semiconductor and photonic manufacturing capabilities in Canada. The company says up to $390 million CAD in combined support is under consideration.
Feature image courtesy Xanadu.