D-Wave Quantum Inc. Enters into CHIPS and Science Act Agreement

D-Wave Quantum Inc. has entered into an Other Transaction Agreement (OTA) with the U.S. Department of Commerce under the CHIPS and Science Act. The agreement provides up to $100,000,000 in funding for advanced microelectronics research and development, specifically for prototyping advanced semiconductor technology for quantum applications. The funding will be disbursed in tranches based on achieving specific milestones related to the development of superconducting quantum computers. The agreement includes terms for intellectual property rights, domestic control, and production. In connection with the OTA, D-Wave Quantum Inc. will issue 7,095,721 shares of its common stock to the Department of Commerce at an issuance price of $14.093 per share, subject to transfer restrictions and a potential repurchase right for the Company. The agreement spans a period of up to five years, with provisions for termination and remedies for non-compliance. The Company has also outlined potential risks associated with this agreement, including uncertainties in funding, potential dilution to existing stockholders, and limitations on future strategic transactions.