Crane Harbor and Xanadu Quantum Form Business Combination Agreement

Business Combination Agreement: Xanadu Quantum Technologies and Crane Harbor Acquisition have entered into a definitive agreement to create a publicly traded photonic quantum computing company, with shares expected to trade on Nasdaq and the Toronto Stock Exchange.

Technological Achievements: Xanadu has achieved significant milestones, including demonstrating quantum supremacy with its 216-qubit Borealis system and developing the Aurora system, which features real-time error correction and is the first networked, modular quantum computer.

Financial Overview: The transaction values Xanadu at a pre-money equity value of $3 billion, with a pro forma enterprise value of approximately $3.1 billion and a market capitalization of $3.6 billion, alongside expected funding of $225 million from Crane Harbor's trust account and $275 million from new investors.

Shareholder and Management Terms: Existing Xanadu shareholders will roll over their shares into the combined company without receiving cash, and they will be subject to lock-up agreements post-transaction, which has been approved by both companies' Boards of Directors and awaits customary closing conditions.