Quanome CEO to Back Quantum Strategy with Up to $15 Million in Non-Dilutive Growth Capital

Insider Brief

• Quanome Technologies entered into a revolving loan agreement with CEO and Chairman Yang Li for up to $15 million in non-dilutive growth capital.
• Approved advances will carry 6% annual interest and may be used for working capital and general corporate purposes, subject to the agreement’s terms.
• The arrangement was independently reviewed by Quanome’s Audit Committee, with Li disclosing his interest and abstaining from the committee’s deliberations and vote.

PRESS RELEASE — Quanome Technologies, Inc. (Nasdaq: QNME) (“Quanome” or the “Company”), has entered into a revolving loan agreement with the Company’s CEO and Chairman, Yang Li, for up to $15 million in non-dilutive growth capital.  The arrangement gives Quanome an additional potential source of capital as it executes its strategic priorities in the quantum computing space.

Approved advances will bear interest at 6.0% per annum. The instrument is revolving, meaning amounts repaid may be borrowed again during the draw period, subject to the agreement’s repayment terms and Mr. Li’s approval of each borrowing request. Any proceeds will be used for working capital and general corporate purposes.

The transaction was reviewed and approved independently by the Audit Committee of Quanome’s Board of Directors. The committee determined that the agreement and the transactions it contemplates are fair and reasonable to the Company and in, or not inconsistent with, the best interests of the Company and its stockholders. Mr. Li disclosed his interest and did not participate in the Audit Committee’s deliberations or vote.

“I am deeply committed to Quanome’s quantum-focused strategy and the long-term potential of the growth opportunities we are pursuing,” said Yang Li, Chief Executive Officer and Chairman of Quanome Technologies. “Providing this financial support is a practical expression of my confidence in our future. Our ambition remains steadfast: to connect quantum science, artificial intelligence and advanced computing with real-world applications that can create tangible social and economic value for communities and economies, world-wide.”

Quanome’s strategy spans four streams: Quantum and AI Systems, Quantum Life Sciences – Molecular Discovery, Advanced Nuclear, and Quantum-Safe Cybersecurity. Within Quantum and AI Systems, Quanome is developing XDT, its AI cloud business. The Company recently announced an infrastructure purchase agreement as an initial step toward its planned first U.S. AI infrastructure hub. These initiatives support Quanome’s broader aim of making advanced technologies more accessible and leveraging them into practical applications for potential long-term economic and societal benefits.

Quanome’s Global Quantum Council and Scientific Advisory Network are also intended to bring scientific, technological and commercial perspectives together for broader market benefit. The Company aims to link with experts in quantum and related complex sciences to help provide insights on trends, as well as evaluate emerging technologies, collaborations and opportunities that provide practical growth and potential.