D-Wave Stockholder Plans To Sell Up To 5M Shares — Retail Confidence In Quantum Play Holds Strong

D-Wave Quantum, Inc. (QBTS) shares could be in the spotlight in Monday's session after the  Palo Alto, California-based company announced an offering of up to 5 million of its common stock.

In a prospectus filed with the SEC late Friday, D-Wave said Lincoln Park Capital, a shareholder, will sell up to 5 million shares of its common stock from time to time. The company had registered the resale of up to 79.27 million shares previously issued to Lincoln Pak under the Purchase Agreement. 

D-Wave will not receive any proceeds from Lincoln Park's resale. Still, it expects to receive up to about $37.8 million, which is the remaining availability under the Purchase Agreement, from the sale of Common Shares to Lincoln Park.

The quantum computing company's shares rose to a high of $11.95 on March 17, as investor sentiment toward the stock improved following a paper published in the Science journal regarding the superiority of its Advantage2 prototype annealing quantum computer over one of the world's most powerful classical supercomputers. 

The stock also received a boost from the company's upbeat revenue guidance in its fourth-quarter earnings report.

Since then, the stock has traced a downtrend, ending the week down 3.80% at $8.36.

In late January, D-Wave announced the completion of a $150 million at-the-market equity offering. "We believe that the completion of this equity offering provides us with the capital necessary to fully execute our operating plan to sustained profitability and positive cash flow," said Dr. Alan Baratz, CEO of D-Wave.

On Stocktwits, sentiment toward D-Wave stock stayed 'extremely bullish' (87/100) by the end of last week, and the message volume remained 'extremely high.'

QBTS sentiment and message volume March 24, as of 1:54 am ET | Source: Stocktwits

A bullish watcher said the stock will likely rally this week because the market has bottomed.

Another user said D-Wave is "solid," as the company actively sells products and accomplishes unbelievable feats. They expect the $5 million offering to be fully subscribed.

D-Wave stock is down a modest 0.50% for the year. The Koyfin-compiled consensus price target of $9.25 suggests a potential upside of about 11%.

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