What happened
Arqit Quantum (ARQQ -1.80%) stock didn't end 2022 on a high note. In the last trading week of the year, the next-generation computing company's share price tumbled by 14%, according to data compiled by S&P Global Market Intelligence. Investors clearly weren't pleased with a new capital-raising effort announced by Arqit.
So what
In a pair of regulatory filings, Arqit disclosed that it may issue up to $100 million in a variety of debt and equity instruments. These may consist of one, several, or all of the company's ordinary shares, preference shares, debt securities, and warrants.
Of that figure, up to $50 million will consist of ordinary shares disbursed via an at-the-market (ATM) offering.
Arqit wrote in one of the filings that it intends to use the proceeds from the issue(s) for "general corporate purposes." It added that this might include working capital, investments, and potential acquisitions. It did not get more specific. The specialty tech company also did not specify when any of these issues might occur.
Now what
Arqit could surely use the funds. In its fiscal 2022, the company's non-IFRS (adjusted) net loss deepened considerably, to over $52 million from fiscal 2021's less than $16 million.
In light of that, it's not a great surprise that Arqit is looking to bolster its finances. Still, no shareholder likes dilution, and that could be considerable in this case -- at the moment, Arqit's market cap is a touch over $465 million. Just the planned equity issue alone, if made at the full $50 million level, would result in double-digit dilution.
