On Monday, Rigetti Computing, Inc., a computer programming services provider, announced the termination of a material definitive loan agreement. The company, based in Berkeley, California, fulfilled its obligations under a Loan and Security Agreement from March 10, 2021, which had been amended and restated on June 21, 2024. The announcement comes as Rigetti's stock has shown remarkable performance, with a 344% gain year-to-date.
The agreement, involving Rigetti & Co., LLC, Rigetti Intermediate LLC, and Trinity Capital Inc (NASDAQ:TRIN). as the lender, was settled with a total payment of approximately $10.5 million. This sum included the outstanding loan balance of about $9.5 million, additional accrued interest, fees, and end-of-term payments totaling nearly $0.9 million, and a prepayment fee of approximately $75,900. Rigetti Computing utilized its cash on hand to make this payment.
With this transaction, all debts under the Loan Agreement have been satisfied, and the company's obligations, except for certain indemnification obligations that survive the agreement's termination, are deemed fulfilled. According to InvestingPro, the company holds more cash than debt on its balance sheet, indicating strong financial flexibility. The payoff signifies the company's financial maneuver to settle its previous debt commitments effectively.
Rigetti Computing is listed on the Nasdaq Capital Market under the ticker symbol NASDAQ:RGTI, with its warrants traded under NASDAQ:RGTIW. The news of the loan agreement termination is based on a statement from a Securities and Exchange Commission (SEC) filing.
This strategic financial move comes as the company, identified as an emerging growth company, continues to navigate the competitive tech industry landscape. For deeper insights into Rigetti's financial health and 14 additional ProTips, visit InvestingPro.
In other recent news, Rigetti Computing has been making significant strides in the quantum computing sector. The company recently secured $100 million from a direct share offering, with the proceeds intended for working capital and general corporate purposes.
This development comes as the company reported a decrease in revenues for Q3 2024, falling to $2.4 million from $3.1 million in the same quarter of the previous year. The gross margins also saw a decrease, dropping to 51%.
Despite these financial challenges, Rigetti has announced ambitious plans for the future. The company intends to introduce a new 36-qubit system by mid-2025 and a system with over 100 qubits by the end of 2025. Collaborations with Riverlane and NVIDIA (NASDAQ:NVDA) are central to Rigetti's strategy for quantum error correction and hybrid computing.
The company's stock has also seen a significant increase recently, reaching its highest level since August of the previous year. This rally coincides with a broader uptick in quantum computing stocks and legislative developments proposing substantial federal funding for quantum research and development.
These are among the recent developments for Rigetti Computing, as the company continues to navigate its financial hurdles while advancing in the quantum computing sector.
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