Quantum Cyber announced that its board has approved engaging investment bankers to pursue an acquisition of an equity stake in Space Exploration Technologies Corp.
- Quantum Cyber views SpaceX’s low-Earth-orbit communications network and growing defense business as complementary to its AI-powered autonomous defense platform.
- Its defense push has also resulted in agreements with BP United and Project LightShift earlier this month.
- The company said it is debt-free after terminating an at-the-market offering with Maxim Group.
Shares of Quantum Cyber (QUCY) surged 20% on Friday, as investors cheered the board’s decision to pursue the acquisition of an equity stake in Space Exploration Technologies Corp. (SPCX).
The company said it has hired investment bankers to help pursue the acquisition.
QUCY shares are on track for a first gain in seven sessions. The recent selloff led to a 31.6% decline in the stock’s value.
Why QUCY Is Interested In SPCX
Quantum Cyber views SpaceX’s low-Earth-orbit communications network, space-based sensing capabilities, and growing defense business as highly complementary to its AI-powered autonomous defense platform.
If completed, the investment would be held as a strategic asset on Quantum Cyber’s balance sheet, strengthening its exposure to advanced aerospace and defense technologies, the company said.
David Lazar, Chief Executive Officer of Quantum Cyber, stated that “SpaceX is central to the future of defense technology.” “We are building a platform that operates across air, land, and sea, and we intend to be positioned at the intersection of autonomous defense and the infrastructure powering the next generation of it.”
Expanding Its Defense Platform
The proposed SpaceX investment follows a series of strategic moves by Quantum Cyber. Earlier this month, the company secured exclusive worldwide rights to Project LightShift’s quantum photonic array technology for defense drone applications.
The company also unveiled Quantum Station, a battlefield command-and-control platform designed to integrate AI and autonomous capabilities to reduce human error in drone operations.
Quantum Cyber recently revised its agreement with BP United, taking direct control of the manufacturing of licensed drone products while retaining exclusive, perpetual rights to the drone technology portfolio. BP United will continue to provide technical support and consulting services.
The company also underscored its stronger financial position by terminating its at-the-market (ATM) sales agreement with Maxim Group earlier this month. Quantum Cyber said it now has a debt-free balance sheet and no outstanding exercisable warrants.
SPCX’s Weak Bond Sale
Meanwhile, SpaceX’s inaugural $25 billion bond offering has come under pressure in the secondary market, according to a report by Bloomberg on Friday.
The decline has reportedly resulted in paper losses of around $305 million relative to Treasuries.
QUCY Bull Eyes $4
Retail sentiment for QUCY on Stocktwits shifted to ‘neutral’ from ‘bearish’ a day earlier. Chatter on the platform primarily focused on the speculation of a buyout, given the latest executive contracts update, as well as a potential short squeeze.
One user expects the stock to climb up to $4, highlighting its debt-free structure. This would represent a 127% increase from current levels.
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The stock has gained around 25% so far this year.
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