IQM to become publicly traded through merger with Real Asset Acquisition Corp.

IQM Quantum Computers is set to merge with Real Asset Acquisition Corp. through a SPAC transaction that will take the superconducting quantum computing company public in the United States with a pre-money equity valuation of around $1.8 billion.

Upon completion, the deal is projected to bring in over $450 million in cash, including trust proceeds, a $134 million PIPE at $10 per share, warrant exercises, and existing cash, all aimed at supporting IQM’s advancements in fault-tolerant quantum computing and broader commercialization endeavors.

In its commitment to expanding its reach, IQM eyeing a dual listing in Helsinki after receiving approval from shareholders and fulfilling customary conditions following the acquisition.

IQM Finland Oy, a major player in full-stack superconducting quantum computers, and Real Asset Acquisition Corp have formally entered into a business combination agreement. This agreement will pave the way for IQM to become a publicly traded company and list American Depositary Shares on a prominent U.S. stock exchange, boosting its access to funds to accelerate technology and commercial development focusing on fault-tolerance quantum computing.

With its headquarters in Finland, IQM is contemplating a dual listing to have its ordinary shares tradable on the Helsinki stock exchange post-transaction completion.

Standing out as a company constructing full stack, open-architecture quantum systems deployable both on-premise and via the cloud, IQM boasts an integrated business model that encompasses proprietary infrastructure from chip design tools to a quantum chip fab, assembly line, and data center. This vertical integration allows IQM to hasten innovation cycles, deliver top-tier quantum computing solutions, and catalyze the growth of the quantum computing ecosystem.

The transaction with Real Asset Acquisition Corp is expected to bolster IQM’s balance sheet with over $450 million in cash at closing, which includes proceeds from existing cash, funding via RAAQ’s trust account, PIPE financing, cash exercise of IQM warrants, and potential listings.

CEO and Co-Founder of IQM, Jan Goetz, emphasized the company’s goal of making quantum computing readily available for practical use, highlighting the shift from theoretical concepts to real-world solutions. Meanwhile, Peter Ort, CEO and Co-Chairman of Real Asset Acquisition Corp, expressed his confidence in IQM’s position as a frontrunner in the field of quantum computing, praising its track record of providing on-premises quantum systems to renowned research institutions.

Acknowledging the significance of the move to go public, IQM’s Chairman of the Board of Directors, Sierk Poetting, underlined that the transition signifies an acceleration of their mission rather than a strategic pivot. The board reassured its commitment to democratizing quantum infrastructure and making it as accessible as classical computing.

As part of the transaction agreement, existing shareholders of IQM have pledged to uphold a lock-up agreement, refraining from selling shares or receiving any cash consideration post-closure. Both IQM and RAAQ boards of directors have unanimously greenlit the business combination, pending approval by shareholders and satisfying other regulatory conditions.

In finalizing the acquisition, the proposed business combination agreement will be filed with the SEC for public disclosure, with details to be furnished in a Form 8-K. The securities to be sold in the PIPE financing, however, are currently unregistered and may not be circulated in the U.S. without SEC authorization or compliance with securities laws.