TIDMQBIT
RNS Number : 7859B
Quantum Exponential Group PLC
05 October 2022
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5th October 2022
Quantum Exponential Group plc
(the 'Company' or 'Quantum Exponential')
Final Results
Quantum Exponential Group plc (AQUIS: QBIT), a company focused
on investing in quantum technology, is pleased to announce its
audited final results for the year ended 30 April 2022.
Highlights
-- Successful listing on AQUIS Exchange raising GBP5.2 million
-- Strengthened the Board and management team with the
appointment of Steven Metcalfe as Chief Executive Officer and
Stuart Nicol as Chief Investment Officer
-- Quantum Exponential has a nominal cost option to acquire
199,993 shares in Arqit Quantum Inc, ("Arqit") a global leader in
quantum encryption technology
-- Makes first investment - Siloton Limited, ("Siloton"), a
company using photonic integrated circuits aiming to end
preventable blindness
-- Investment in Aegiq Ltd, ("Aegiq"), a hardware photonics
company using quantum technologies to address the global
cybersecurity threat posed by the rise of quantum computing
Post-period Highlights
-- Investment in Universal Quantum, a company focused on
building the world's first million qubit quantum computer
-- Investment into QLM Technology Ltd ("QLM"), alongside lead
investor and global oilfield services giant Schlumberger. QLM is a
UK company focused on revolutionising gas sensing in the oil and
gas industry and other industries using quantum solutions to
monitor greenhouse gas emissions
-- Joins the UK Business Angels Association
-- Becomes a member of ICFO, a Spanish research institute
devoted to the science and technology of photonics
Commenting on the results Steven Metcalfe, Chief Executive
Officer, said:
"I am very pleased with the progress we've made during and post
period. The successful listing at the end of 2021 set the
foundations for growth, and with increasing governmental support
globally for investing in quantum, we have found ourselves at an
opportune moment to capitalise on the exciting stage of the
evolution of this technology. Quantum Exponential is the only
UK-listed company providing investors with the opportunity to
invest in early-stage quantum businesses at the same time as
governments worldwide are increasing their contributions to the
research and education of this revolutionary technology.
"Despite the macro-economic backdrop, investment activity in the
early-stage quantum domain remained very strong. Investors have
realised that quantum computers are the future and will in time
supersede classical computers, which are slower and unable to solve
more complex problems.
"Our strategy remains unchanged, to build an exciting portfolio
of investee companies that we expect will increase shareholder
value. We were delighted to have made our first two investments
during the period and to add two additional investee companies to
our portfolio post-period. Encouragingly we have experienced a
significant increase in the quality and number of potential
investee companies coming forward. We are optimistic in our ability
to add to our investee portfolio over the coming year and look
forward to updating shareholders on our progress as we go."
For more information, visit the Company's website:
www.quantumexp.co.uk or contact:
Steven Metcalfe, Chief Executive Officer c/o quantum@stbridespartners.co.uk
Novum Securities (AQSE Corporate Adviser) Tel: +44 (0)20 7399 9400
David Coffman, Lucy Bowden
Oberon Capital (Broker) Tel: +44 (0)20 3179 5344
Mike Seabrook, Chris Crawford
St Brides Partners Limited (Financial PR) quantum@stbridespartners.co.uk
Catherine Leftley, Ana Ribeiro, Isabelle Morris
Chairman's Statement
When I was approached about becoming Chairman of Quantum
Exponential Group plc, I jumped at the chance. Going back fifteen
years, and during my time as UK Minister for Science, I saw the
potential of quantum technologies - along with AI and advancements
in synthetic biology - to transform the lives of future
generations.
In much the same way that the internet and mobile communication
devices have changed how we all live and work today, I believe
quantum technologies are going to do the same in many more ways in
the future. And that time is coming around now.
This is my first report to shareholders since the company listed
on the AQUIS exchange in November 2021 and I can report that we
have made good progress.
The ethos behind Quantum Exponential is to provide investors,
who would otherwise not be able to do so, with exposure to
early-stage investment in quantum-technology businesses. The sort
of businesses that can both grow and scale to be hugely successful,
and which are focused on tackling global problems such as combating
climate change, global cyber security and improvements in
healthcare and medical procedures. Our first investee company
Siloton, which is using quantum techniques to reduce the effect of
macular degeneration, one of the world's biggest causes of sight
loss, is a perfect example.
We have a world-class Advisory Board contributing a wide range
of insights that are helping to guide our strategy. Its members
also provide expert views, where appropriate, on individual
investment proposals. I would like to thank them for their
contributions over the last twelve months.
Our Chief Executive Officer, Steven Metcalfe, and Chief
Investment Officer, Stuart Nicol, have laid the foundations for the
Company's future growth, and Martin Schwedler who stepped into the
role of senior advisor to Europe shortly after listing is building
our network there.
The company's focus will be firmly on investments in NATO and
NATO friendly countries. Governments in the US, Europe and the UK
all have strategies, plans and programmes to develop and support
quantum technology research and companies developing and utilising
quantum technologies. Quantum Exponential will continue to look to
identify and support the best emerging companies which are taking
advantage of government support.
During the year, in addition to investing in Siloton and Aegiq,
the Company maintained its option in Arqit Quantum Inc, a global
leader in quantum encryption technology which has entered into an
agreement with the United States Airforce, regarding evaluating its
QuantumCloud(TM) technology.
Post-period, the Company has built on the foundations laid and
invested in a further two companies: Universal Quantum Ltd, which
is looking to build the world's first million Qubit computer; and
QLM Technology Ltd, a UK-based company using quantum technology to
detect methane leaks in industry. This has further diversified our
portfolio of assets.
Additionally, the Company has collaborated with and joined a
number of influential organisations. Namely, the Institute of
Physics, the UK Business Angels Association, and more recently the
Institute of Photonic Sciences ("ICFO") Corporate Liaison
Programme. These are pivotal to the sharing of knowledge and
increasing our exposure to potential investee companies.
Investment Appetite
As quantum technologies evolve and the range of applications
broadens so does the realisation by governments and corporates
around the world of the potential of this emerging technology.
According to the Boston Consulting Group, quantum computing
alone could generate anything between US$450 billion to US$850
billion in value over the next 15 to 30 years. Quantum computing
attracted almost twice as much investment capital in 2020 and 2021
(US$2.15 billion) as it did in the previous decade (US$1.16
billion) and while hardware continues to attract the most money,
investment in software jumped nearly 80% in 2020 and 2021 compared
with the previous decade. It has been reported that the US Quantum
Information System budget is set to grow to US$877 million in 2022,
double 2019 spend.
Outlook
Looking ahead, we remain confident about the impact that quantum
technology will have globally, with various industry reports
showing that most businesses will now have to start planning for
the new quantum world. Notwithstanding the difficult overall
macroeconomic climate, the environment for quantum technologies at
least feels very favourable. We have seen a significant increase in
the flow of good companies, with quantum technology at the
forefront of their business, who are looking for investment to
accelerate growth.
We will look to increase our network with further collaborations
as we move forward to expand our portfolio, mainly in the UK but
also in other NATO-friendly countries.
I would like to take this opportunity to thank shareholders for
their continued support and look forward to updating shareholders
on our progress in due course.
Report from Chief Investment Officer
It has been a busy initial period of investment assessment and
investment.
The investment team has grown since inception and currently
consists of the CIO, investment manager, quantum physicist and
investment analyst. The team is further supported by an active
advisory board, access to sector-specific data sources and
partnerships with organisations fostering innovation in quantum
technology.
The Company has added value to its investees via strategic
advice and introductions to potential customers, investors, and
suppliers. Looking ahead, we remain bullish about quantum
technology and encouraged by the quality of investee companies we
are being introduced to. This cements our belief that now is the
time to be investing in quantum technology led business.
Investment Review
We monitor our portfolio regularly and we believe that all our
investees are developing their businesses broadly in line with the
plans they provided us at the time of investment.
Arqit Quantum Inc.
Prior to listing, the Company secured an option to acquire
199,993 ordinary shares in Arqit Quantum Inc. Arqit is a UK-based
Company listed on NASDAQ with a market capitalisation of USD
686.443M as at close on business on 3 October 2022.
A global leader in quantum encryption technology, Arqit has
successfully demonstrated a quantum safe communication channel to
secure data transmissions for both UK sensors and IoT as well as a
US manufacturer of military drones. https://arqit.uk/
Siloton Limited
On 1 March 2022, the Company led a cGBP470,000 initial financing
round, investing cGBP300,000 into Siloton Limited. The Company
holds 2,752 ordinary shares in Siloton representing 12.79% of
Siloton's enlarged issued share capital.
Siloton is a technology company that uses quantum techniques and
photonic integrated circuits ('PICs') for use in sub-surface
optical scanning devices with applications across healthcare, and
non-destructive testing.
Siloton will initially focus on advancing the development of a
technology called Optical Coherence Tomography ('OCT') for the
assessment of age-related macular degeneration ('AMD'), a condition
that if untreated can lead to blindness and is estimated to affect
approximately 288 million patients worldwide by 2042. Since our
investment Siloton has been awarded an Innovate-UK-funded grant.
This project sees Siloton working alongside the Macular Society to
understand whether the UK is suitable for a home-based monitoring
service for patients with wet AMD, allowing them to receive
specialist eye scans in the comfort of their own home. (
https://www.siloton.com/news )
Aegiq Limited
On 30 April 2022, the Company invested GBP406,050 in two parts
in Aegiq Limited, a hardware photonics company using quantum
technologies to address the global cybersecurity threat posed by
the rise of quantum computing.
Following the investment, Quantum Exponential will have a c4.06%
stake in Aegiq's issued share capital on a fully diluted basis.
Aegiq raised close to GBP4m in its investment funding rounds. This
is supplemented by a number of grants which have recently been
bolstered by further funding from Innovate-UK.
On 15 Sep 2022, Aegiq announced that it had received a grant
from Innovate UK to develop a field-deployable quantum light
source
The system intends to underpin scalable applications in quantum
computing and quantum communications and is part of a GBP500,000
project in collaboration with Fraunhofer CAP.
https://www.aegiq.com/
Universal Quantum Limited ("Universal Quantum")
On 16 May 2022, the Company invested GBP450,000 through an
Advanced Subscription Agreement ("ASA") in Universal Quantum
Limited ("Universal Quantum"), a company focused on building the
world's first million quantum bit ("qubit") quantum computers. The
funds will be used to continue Universal Quantum's focus on its
integrated Quantum Processing Unit. The funds invested under the
ASA will convert into ordinary shares in Universal Quantum on the
earlier of a further financing round of at least GBP10m, a sale, a
liquidation event, or the first anniversary of the ASA.
The team at Universal Quantum has over 15 years of quantum
computing experience and is backed by a number of institutional
investors such as Hoxton Ventures, Village Global, FoundersX,
Luminous Ventures, and 7Percent. Its activity is further supported
by several grants. https://universalquantum.com/
QLM Technology Ltd
On 4 Aug 2022, the Company invested GBP450,000 as part of a
GBP12,000,000 Series A funding round in QLM Technology Ltd ('QLM'),
a UK-based photonics hardware and technology development company
that has developed a cutting-edge gas imaging camera based on
quantum technology termed a Quantum Gas Imaging Lidar.
Beyond emissions monitoring for the oil and gas market, the QLM
solution is well-suited for use in tracking and reducing methane
emissions in other applications such as in biogas production,
landfills, wastewater treatment plants, and coal mines.
Following the Investment, Quantum Exponential holds 1,203,208 B
Ordinary Shares at a price of GBP0.374 in QLM representing 1.6% of
QLM's fully diluted share capital.
The funding round was led by Schlumberger and included new
investment from existing investors Green Angel Syndicate,
Enterprise 100 Syndicate, the Development Bank of Wales, Newable,
BritBots, and BPEC. https://qlmtec.com/
Financial Review
Quantum Exponential Group plc
Consolidated Statement of Comprehensive Income
For the period ended 30 April 2022
Period
9 April
2021
to
30 April
2022
GBP
Revenue 9,497
Gross profit 9,497
Operating expenses (753,386)
-------------
Operating loss (743,889)
Finance income 5
Gain on fair value adjustments on investments 1,087,817
-------------
Profit before tax 343,933
Taxation on operations (121,812)
-------------
Profit for the period 222,121
-------------
Earnings per share
Earnings per share from profit attributable to the ordinary
equity holders of the company
Total Basic EPS 0.001p
Total Diluted EPS 0.001p
Dividend
The Group does not declare a dividend for the period.
Quantum Exponential Group plc
Consolidated Statement of Financial Position
As at 30 April 2022
30 April
2022
GBP
Assets
Non-current assets
Investments 1,993,512
-----------
Total non-current assets 1,993,512
Current assets
Cash and cash equivalents 3,694,790
Other receivables 71,900
-----------
Total current assets 3,766,690
Total assets 5,760,202
Current liabilities
Trade payables and other payables (80,130)
Provision for liabilities (121,813)
-----------
Total current liabilities (201,943)
Total liabilities (201,943)
Net assets 5,558,259
Equity
Share capital 3,283,750
Capital contributions 199,732
Share premium 2,114,610
Merger reserve (261,810)
Other reserves (144)
Retained profit 222,121
Total equity 5,558,259
Quantum Exponential Group plc
Consolidated Statement of cash flows
For the period 9 April to 30 April 2022
Period
9 April
2021
to
30 April
2022
GBP
Profit before tax for the year 222,121
Adjustments for:
Interest income (5)
(Increase) in trade and other receivables (71,900)
Increase in trade and other payables 201,943
Net fair value adjustment gain (1,087,817)
-------------
Cash (outflow)/inflow from operating activities (735,658)
-------------
Investing activities
Purchase of investments (705,963)
Net cash used in investing activities (705,963)
-------------
Financing activities
Proceeds from issue of ordinary share capital 5,136,550
Interest income 5
purchase of own shares via EBT (144)
-------------
Net inflow of cash generated from financing
activities 5,136,411
-------------
Net increase in cash and cash equivalents 3,694,790
Cash and cash equivalents at beginning -
of period
Cash and cash equivalents at end of period 3,694,790
Quantum Exponential Group plc
Consolidated Statement of changes in equity
For the period 9 April to 30 April 2022
Retained
Share Share Merger Capital Other profits/ Total
capital premium reserve contribution reserves (losses) equity
GBP GBP GBP GBP GBP GBP GBP
Balance on - - - - - - -
incorporation
(9 April
2021)
Profit for
the period - - - - - 222,121 222,121
Issue of
shares 3,283,750 2,114,610 - - - 5,398,360
Movement
on reserve
arising on
acquisition
of subsidiary - -- (261,810) - - - (261,810)
Gifted shares - - - - - 199,732
Purchase
of own shares - - - (144) - (144)
At 30 April
2022 3,283,750 2,114,610 (261,810) 199,732 (144) 222,121 5,558,259
The financial information set out in this announcement does not
constitute statutory accounts.
This financial information has been extracted from the audited
full accounts of the Group for the year ended 30 April 2022.
The financial statements are prepared in accordance with
International Financial Reporting Standards ( IFRS ).
A copy of the Company's financial statements for the year ended
30 April 2022 will be posted to shareholders and will be delivered
to the Registrar of Companies.
The full Annual Report of the Group will be available on the
Company's website: www.quantumexp.co.uk
**ENDS**
Notes to Editors
About Quantum Exponential Group plc
Quantum Exponential is a first of its kind, AQSE Growth Market
enterprise company, focused on opportunities in quantum technology
and the wider quantum computing sector, with an advisory board made
up of industry advisors, entrepreneurs, and technology investment
professionals with broad access to quantum opportunities and
markets. Quantum Exponential's investment strategy is to assemble a
portfolio of minority investments in early-stage global quantum
technology companies, in NATO friendly countries, offering
institutional and private investors access to revolutionising
technologies and industries.
Quantum Exponential trades on AQSE Growth Market under the
ticker symbol "QBIT'.
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