London’s only public quantum investor delists in latest market blow

Confidence in the London markets has been tested again as a small-cap tech investor announced its decision to cease trading shares in October.

London-based Quantum Exponential Group said in a company update that at a general meeting, the resolution to cancel the admission of shares on the AQSE Growth Market passed.

Trading in Quantum Exponential shares will officially cease at the close of the markets on 30 October.

In February 2024, Quantum Exponential Group said that its status as a listed company had impeded its ability to secure new investors despite “serious” interest.

The company also said that “since incorporation, there has also been a severe downturn in general liquidity and valuations for all micro-cap listed companies” and that the wider geopolitical environment had agitated this.

Shares in the company are currently more than 90% less than at the time of its initial public offering (IPO). Its share value peaked in November 2021, reaching 6.875p.

UKTN contacted Quantum Exponential Group for comment.

Quantum Exponential Group joins the ever-growing list of British tech companies seeing brighter horizons as a private firm. This year, Manchester’s C4X delisted from the AIM due to a challenging experience raising new funds. The fintech group Tintra similarly voted to ditch the UK public markets. 

Quantum Exponential Group backs early-stage companies developing quantum computing technologies.

The investor floated on the Aquis Exchange that same year, raising a little over £5m. At the time of its IPO, the company was valued at just under £20m.

The company has since backed startups such as AegiQ, QLM Technology and Universal Quantum.

It also participated in Oxford Quantum Circuits’ $1.1m round in February 2023 that bridged its $47m Series A and its record-breaking $100m Series B.

In 2022, Quantum Exponential Group CEO Steven Metcalfe described the investment activity in the quantum domain as “very strong”.

Metcalfe said at the time: “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.”

He added: “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.”

Despite Metcalfe’s enthusiasm, the company posted almost £2m in pre-tax losses for the year ended April 2023, significantly down from its profit of £343,933 the previous year. The value of its assets for the period dropped a third from £5.7m to £3.8m.