London’s only publicly traded quantum investor, Quantum Exponential Group, has announced its decision to delist from the AQSE Growth Market as reported by UKTN. The company cites difficulties in securing new investors despite serious interest. The company’s shares will cease trading on October 30. This move comes after a challenging period for the firm, which saw its share value plummet by over 90% since its initial public offering in 2021.
Quantum Exponential Group backs early-stage companies developing quantum computing technologies, including AegiQ, QLM Technology, and Universal Quantum. The company’s CEO, Steven Metcalfe, had previously expressed enthusiasm for the investment activity in the quantum domain, noting that “quantum computers are the future” and will eventually supersede classical computers. Despite this optimism, the company posted significant pre-tax losses and a decline in asset value over the past year.
Quantum Exponential Group Delists: A Setback for London’s Public Quantum Investment Scene
The decision by Quantum Exponential Group, a small-cap tech investor, to cease trading shares on the AQSE Growth Market has sent shockwaves through the London markets. The company’s resolution to cancel its admission of shares was passed at a general meeting, with trading set to officially cease on October 30. This move marks a significant setback for the public quantum investment scene in London.
Quantum Exponential Group had previously cited its listed status as an impediment to securing new investors, despite “serious” interest. The company also pointed to a severe downturn in general liquidity and valuations for all micro-cap listed companies, exacerbated by the wider geopolitical environment. Shares in the company have plummeted over 90% since its initial public offering (IPO) in 2021, with its share value peaking at 6.875p in November of that year.
The delisting of Quantum Exponential Group is not an isolated incident. This year has seen a growing trend of British tech companies opting to go private, citing difficulties in raising new funds on the public markets. Manchester’s C4X and fintech group Tintra have also delisted from the AIM, highlighting the challenges faced by small-cap tech investors in the current market climate.
Quantum Exponential Group: A Backer of Early-Stage Quantum Computing Companies
Quantum Exponential Group has been a key player in the UK’s quantum computing ecosystem, backing early-stage companies developing cutting-edge technologies. The company floated on the Aquis Exchange in 2021, raising £5m and valuing itself at nearly £20m. Since then, it has invested in startups such as AegiQ, QLM Technology, and Universal Quantum.
One notable investment was its participation in Oxford Quantum Circuits’ $1.1m round in February 2023, which bridged the company’s $47m Series A and record-breaking $100m Series B. This highlights the group’s commitment to supporting innovative companies in the quantum domain.
The Investment Landscape for Quantum Computing
Quantum Exponential Group CEO Steven Metcalfe has described the investment activity in the quantum domain as “very strong.” In 2022, he noted that his company’s successful listing had set the foundations for growth, with increasing governmental support globally for investing in quantum.
Metcalfe’s enthusiasm is rooted in the potential of quantum computers to supersede classical computers, which are slower and unable to solve more complex problems. However, despite this optimism, Quantum Exponential Group posted significant pre-tax losses of almost £2m for April 2023, down from a profit of £343,933 the previous year.
The value of its assets also dropped by a third from £5.7m to £3.8m during the same period. This highlights the challenges faced by companies operating in this space despite the promising long-term prospects of quantum computing technologies.
The Future of Public Quantum Investment in London
The delisting of Quantum Exponential Group raises questions about the future of public quantum investment in London. While the company’s decision may be seen as a setback, it also underscores the need for investors and companies to adapt to the changing market climate.
As the UK continues to support innovation in the quantum domain, new opportunities are likely to emerge for investors and companies alike. However, these developments will require careful navigation of the challenges the current market environment poses.
In this context, Quantum Exponential Group’s delisting reminds us of the importance of flexibility and adaptability in the face of uncertainty. As the quantum computing ecosystem continues to evolve, new players are likely to emerge to take advantage of the opportunities presented by this rapidly advancing field.
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