Crane Harbor Acquisition Corp., a special purpose acquisition vehicle, has entered into a business combination agreement with Xanadu Quantum Technologies, Inc., that is expected to result in Xanadu being the first and only publicly traded pure play photonic quantum computing company. The combined company is expected to have a pro forma enterprise value of approximately US$3.1 billion and a pro forma market capitalization of approximately US$3.6 billion. Upon closing of the transaction, shares of the combined company are expected to trade on the Nasdaq Stock Market and on the Toronto Stock Exchange.
Xanadu has produced the first networked, modular and scalable quantum computer. In connection with the transaction, the combined company is expected to receive US$225 million cash from Crane Harbor’s trust account, assuming no redemptions by Crane Harbor’s public stockholders, and US$275 million from a group of strategic and institutional investors via a common equity committed private placement investment. The net proceeds will be used to accelerate the development and deployment of Xanadu's photonic quantum computer systems to fully fault-tolerant, with subsequent commercial traction via both run time sales and monetization of its PennyLane software.
Bennett Jones acted as Canadian counsel to Crane Harbor.
The Bennett Jones team is led by Harinder Basra (M&A/Capital Markets) and includes Annie Tonken, Raghav Sodhi (M&A/Capital Markets), Anu Nijhawan, Marshall Haughey (Tax), Kees de Ridder, David Wainer (Intellectual Property), Joseph Blinick and William Bortolin (Litigation).
