Xanadu Quantum to launch on TSX and NASDAQ this month

Xanadu Quantum Technologies is trying to lead the Quantum race, with a launch on the Toronto Stock Exchange set for March 27th.

The listing would make Xanadu the first publicly traded photonic quantum technology company, according to the companies involved in the transaction. The move comes as quantum computing groups seek larger funding rounds and broader investor support while the industry remains at an early commercial stage.

Crane Harbor Acquisition Corp has approved the business combination with Xanadu, clearing the way for the quantum firm to list on Nasdaq and the TSX under the ticker XNDU.

After the transaction closes, the combined company is expected to operate as Xanadu Quantum Technologies. Trading is expected to begin once the merger is complete and stock exchange conditions are met.

Public market step

The shareholder vote is a key step in taking Xanadu public through a merger with a special purpose acquisition company, or SPAC. Crane Harbor is a blank-cheque company formed to complete a merger or similar transaction with another business.

Xanadu focuses on photonic quantum computing, which uses light-based systems rather than some of the alternative approaches pursued across the sector. Its systems are designed to operate at room temperature, distinguishing them from many quantum computing efforts that depend on more demanding environments.

Founded in 2016, the company has built both hardware and software operations. It also leads the development of PennyLane, an open-source software library for quantum computing and application development.

Christian Weedbrook, Xanadu's founder and CEO, described the transaction as an important stage for the company and its backers.

"The anticipated close of the transaction marks a major milestone for our team and partners," Weedbrook said. "As the first publicly traded photonic quantum computing company, we believe Xanadu is entering this next chapter from a position of technological leadership and with a clear focus on providing practical quantum solutions to customers worldwide."

Weedbrook is a prominent figure in Canada's quantum sector and a member of the country's Quantum Advisory Council. He has worked in the field for more than 15 years, according to the company.

The transaction is expected to generate about USD $302 million in gross proceeds from Crane Harbor's trust account and a fully committed PIPE financing. That would come alongside separate talks with the Canadian federal government and the Ontario government over a potential investment of up to CAD $390 million under Project OPTIMISM.

The investment, announced on March 11, is targeted at developing advanced semiconductor and photonic manufacturing capabilities.

The proposed government backing has not been finalised and remains subject to due diligence and definitive agreements. Together, the listing proceeds and any government investment would give the quantum computing company a substantial pool of capital as it works to develop its technology.