Xanadu Quantum Technologies (XNDU) Investor update summary

Transaction overview and funding

• The business combination with Crane Harbor Acquisition Corp. is targeted to close in late Q1 or early Q2 next year or Q1 2026, subject to customary conditions and regulatory approvals.

• The pro forma enterprise value is estimated at $3.1 billion, representing a 50%+ discount to recent private market transactions and a step up from the last $1 billion Series C round.

• Funding includes $224 million cash in trust and $275 million in PIPE at $10/share, with net proceeds expected to be ~$459 million at closing.

• Xanadu shareholders will roll over 100% of equity, resulting in approximately 84% ownership in the combined entity.

• Government funding, already at CAD 40 million, is anticipated to increase 5-10x in the next 6-12 months, reflecting strong national support.

Strategic positioning and technology

• Xanadu will be the first and only publicly listed pure-play photonic quantum computing company, offering significant advantages over other modalities.

• Achieved quantum supremacy in 2022 with a 216-qubit system and released Aurora, the first networked, modular, scalable quantum computer.

• The photonic approach enables room temperature computation, manufacturability with silicon processes, modular scalability via fiber optics, and superior clock speed and connectivity.

• No fundamental scientific breakthroughs are needed for commercial viability; scaling is now primarily a funding issue.

• PennyLane software platform has ~47% quantum user penetration, is hardware-agnostic, and supports cross-modality integrations.

Market opportunity and commercial traction

• The quantum computing market is projected to reach $9.1 billion by 2025 and $90 billion by 2040, with up to $850 billion in annual value creation post-2040.

• Proven case studies and use cases with Fortune 500 clients in automotive, chemicals, aerospace, battery, green energy, and quantum chemistry sectors.

• Commercial model includes hardware access, system sales, SaaS subscriptions, IP licensing, and monetization of PennyLane and cloud access to quantum computers.

• Early access and joint development agreements with blue-chip partners are generating valuable IP, business outcomes, and recurring revenue.

• Over 120 global university partners are training the future quantum workforce on PennyLane.