Rigetti Computing (NASDAQ: RGTI), a player in the quantum computing sector, has established an at-the-market sales agreement with financial services firms Needham & Company, LLC and B. Riley Securities, Inc. The company announced today that this arrangement will allow it to offer and sell shares of its common stock, potentially raising up to $100 million.
The sales agreement, which was detailed in a recent filing with the U.S. Securities and Exchange Commission (SEC), grants Rigetti the option to sell shares at its discretion through the agents. These transactions would occur on The Nasdaq Capital Market or other available trading markets for Rigetti's stock. The company's registration statement on Form S-3, which was effective as of December 19, 2023, and the prospectus supplement dated today, provide the regulatory framework for these potential sales.
The compensation for the agents is set at a maximum of 3.0% of the gross sales price of the shares sold. Additionally, Rigetti has agreed to reimburse the agents for certain expenses and to indemnify them against specific liabilities, including those under the Securities Act.
Rigetti has emphasized that there is no obligation to sell any shares under this agreement. The offering will remain active until either party decides to terminate it, which can be done through a five-business-day notice from either side or by mutual agreement in the event of certain adverse occurrences.
This move by Rigetti Computing provides a flexible mechanism for the company to access capital markets and finance its operations or growth initiatives as needed. It represents a common financial strategy for publicly traded companies seeking to manage their capital structure proactively.
The information for this article is based on a recent SEC filing.
InvestingPro Insights
Rigetti Computing (NASDAQ: RGTI), known for its potential in the burgeoning field of quantum computing, has recently shown a notable financial maneuver through its at-the-market sales agreement. An in-depth look at the company's financial health and market performance through InvestingPro data reveals several key insights that could interest investors.
The company's market capitalization stands at a modest $337.18 million, reflecting its status as a growth-oriented firm in a highly specialized sector. Despite a challenging environment, as indicated by a year-over-year revenue decline of -8.35%, Rigetti boasts an impressive gross profit margin of 76.68%, signifying its ability to maintain profitability on its core services and products.
InvestingPro Tips highlight that Rigetti has more cash than debt on its balance sheet, suggesting a solid liquidity position to support its operations. Moreover, the company's liquid assets exceed its short-term obligations, which is a positive sign for its financial stability. However, analysts are cautious, anticipating a sales decline in the current year and not expecting the company to turn a profit within this period. Additionally, the stock is known for its high price volatility, which could be a consideration for risk-averse investors.
For those looking to delve further into Rigetti's prospects, InvestingPro offers additional tips to aid in making informed decisions. With the current information, there are 13 more InvestingPro Tips available for Rigetti, which can be accessed with the coupon code PRONEWS24 for an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
As the company navigates through its growth phase, these insights and data points serve as crucial tools for investors to gauge both the potential opportunities and risks associated with Rigetti Computing.
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