Quantum Computing shares fell Monday morning after the company said it expects to raise $500 million by way of a private placement as it looks to fund its growth plans.

Shares fell 12% ahead of the morning bell to $20.

The integrated photonics and quantum optics technology company said late Sunday that it will issue 26.9 million shares to several large existing shareholders as well as a first-time investment from a global alternative asset manager.

Chairman and Chief Executive Yuping Huang said this financing supports the company's financial position and its multi-year growth plan, including commercialization efforts, strategic acquisitions, the expansion of sales and engineering personnel, and strengthening Quantum's manufacturing capabilities.

Huang added that the $500 million offering is priced at a "substantial premium" to its four recent offerings and brings its total gross capital raised to $900 million in just under a year.

Quantum shares have risen about 40% since the start of the year, and has grown over thirty times its value over the last 52 weeks.

The offering is expected to close on Sept. 24.