** Shares of photonics company Quantum Computing QUBT.O slump as much as 42.5%; last down 38.3% at $2.72

** QUBT, on Thursday, said it entered an agreement to sell 16 mln shares in a registered direct offering for $40 mln gross proceeds

** Company plans to use the proceeds for repaying debt, working capital and general corporate purposes

** Purchase price of $2.50 represents a 43% discount to stock's last close of $4.40

** Titan Partners Group, a division of American Capital Partners, acting as sole placement agent for the offering

** As of last close, QUBT shares up 381.9% YTD

(Reporting by Arasu Kannagi Basil in Bengaluru)

((ArasuKannagi.Basil@thomsonreuters.com;))