Insider Brief
- Zapata Quantum has completed Phase Two of its strategic restructuring, including new capital raised and major reductions in legacy debt.
- The company secured $1.25M in financing and restructured an additional $8.6M in debt, bringing total restructured liabilities to $18.7M.
- Zapata plans to use the fresh capital to rebuild its scientific team, accelerate SEC compliance, and move toward relisting on a national exchange.
PRESS RELEASE — Zapata Quantum, Inc. a pioneer in quantum computing application and algorithm development, today announced the completion of Phase Two of its strategic restructure, marking another major milestone in establishing the Company’s foundation for sustained growth.
Phase Two included a $1.25 million capital raise at an over 3x step-up in effective price per share from the most recent financing round, as well as the restructuring of an additional $8.6 million in debt bringing total debt restructured to $18.7 million.
“These accomplishments signal a strong vote of confidence from both strategic investors and key stakeholders, and are a direct reflection of our continued momentum and strong market position as the only hardware-agnostic, pure-play publicly traded quantum software company. The fresh capital and debt restructure significantly enhance our financial flexibility and position us to execute on our growth strategy – including rebuilding our core team, advancing commercial progress and unlocking the full value of our technology portfolio.” — said Sumit Kapur, Chief Executive Officer of Zapata Quantum.
Solidifies Balance Sheet to Unlock Path to Growth
In Phase Two, the Company restructured an additional $8.6 million of debt. Altogether, the Company has now addressed $18.7 million of debt or over 85% of its legacy unsecured liabilities at year-end 2024, with well over 80% of the restructuring accomplished through conversions to equity.
“This milestone is a testament to Sumit’s tenacity and leadership in guiding the company through a complex restructuring,” said Clark Golestani, Chairman of the Board of Zapata Quantum. “We have not only surpassed our balance sheet cleanup targets but also preserved all of our intellectual property and strategic assets. Zapata is now well positioned to translate its pioneering work in quantum software into meaningful commercial outcomes and long-term shareholder value.”
Uses Proceeds to Accelerate Path to SEC Compliance
Zapata is utilizing the new financing to accelerate both the rebuilding of its core scientific team as well as to retain a top-tier financial and accounting advisory firm to expedite its path to full SEC compliance, which the Company expects to achieve within the current quarter. Going forward, the Company also plans to pursue a return to a national exchange, such as Nasdaq, where it was previously listed.
“The additional capital has given us the flexibility to add critical resources both on the scientific and financial fronts,” continued Kapur. “We now have a rock-solid foundation and a clear path forward to continuing our legacy of leadership in quantum computing software.”
