Canadian quantum computing firm Xanadu Quantum Technologies, Inc. has announced plans to list on Nasdaq through a merger with special purpose acquisition company (SPAC) Crane Harbor Acquisition (CHAC.US). The deal values Xanadu at $3 billion pre-money equity valuation, with the combined entity's enterprise value reaching approximately $3.1 billion and a market capitalization of $3.6 billion.
According to Monday's announcement, the merged company will receive about $225 million from Crane Harbor's trust account, assuming no redemptions by public shareholders. An additional $275 million will be raised through a concurrent private investment in public equity (PIPE) offering, where institutional investors will purchase shares at $10 per unit. Notably, over 90% of PIPE funding comes from new investors unaffiliated with Xanadu, including Advanced Micro Devices (AMD.US), BMO Global Asset Management, CIBC Asset Management, MMCAP Ventures, Planet First Partners, and Polar Asset Management Partners.
Proceeds will accelerate development and deployment of photonic quantum computing systems, aiming to achieve full fault tolerance while commercializing runtime sales and PennyLane software. CEO Christian Weedbrook revealed plans to expand hardware infrastructure, ultimately building quantum data centers. "Public market enthusiasm for quantum computing stocks remains strong—all initially SPAC-listed companies," Weedbrook noted, citing D-Wave Quantum (QBTS.US)'s 230% surge since its August 2022 NYSE debut.
Quantum computing, increasingly transitioning from theory to commercialization, has attracted major tech players like IBM (IBM.US), Microsoft (MSFT.US), and Google (GOOGL.US), which recently announced algorithmic breakthroughs. JPMorgan (JPM.US) also incorporated quantum computing into its $1.5 trillion tech investment strategy this October.
Founded in 2016 and headquartered in Toronto, Xanadu distinguishes itself by developing photon-based quantum computers that operate at room temperature, eliminating costly cryogenic cooling systems required by superconducting or trapped-ion alternatives. While current clients focus on pharmaceuticals, AI, and materials development, Weedbrook anticipates broader adoption across industries.
Under the agreement, existing Xanadu shareholders and management will convert their stakes into new company equity without cash proceeds. The board-approved deal will enable dual listing on Nasdaq and the Toronto Stock Exchange, positioning Xanadu as the only pure-play photonic quantum computing public company.