Crane Harbor and Xanadu: Merger Announcement with a 17% Increase

Crane Harbor Acquisition Corp. (CHAC) shares rose by 17% following the announcement of a definitive merger agreement with Xanadu Quantum Technologies. Xanadu is a Canadian company specializing in photonic quantum computing.

This transaction values Xanadu at $3 billion, while the merged company is expected to stand out with an enterprise value of $3.1 billion and a market capitalization of $3.6 billion. The total gross proceeds from the agreement are planned to be $500 million, supported by a $275 million PIPE investment from strategic and institutional investors such as AMD, BMO, and OMERS Ventures.

Founded in 2016, Xanadu demonstrated quantum supremacy with its Borealis quantum processor in 2022, as well as introducing its Aurora system, which is designed for real-time error correction with a new modular and networked computer. Additionally, the company’s open-source platform, PennyLane, is used by nearly half of quantum developers worldwide.

The merged company is expected to trade on both Nasdaq and the Toronto Stock Exchange following regulatory approval.