Seraphim Space Investment Trust (LSE: SSIT), the world’s first listed fund focused on Space Tech, has acquired a holding in Arqit Quantum Inc. (Arqit) from the Seraphim Space LP (Seraphim Space Fund).
As set out in the IPO prospectus, Seraphim Space will acquire four assets from the Seraphim Space Fund for newly issued ordinary shares in the Company. This acquisition represents the second of those transactions to complete.
Arqit is a leader in quantum encryption technology designed to eliminate the threat of cyber-attack and data theft. The business has a unique quantum encryption Platform-as-a-Service which makes the communications links of any networked device secure against current and future forms of attack – even from a quantum computer. On 7 September, Arqit completed its proposed merger with Centricus Acquisition Corp. The combined company has been renamed Arqit Quantum Inc. and its shares have commenced trading on NASDAQ under the new ticker symbol “ARQQ” for Arqit common stock.
In accordance with the relevant sale and purchase agreement entered into at the time of the IPO, the Company has acquired for cash, 2,421,634 shares in Arqit valued at 27,328,785.50 and the partners of the Seraphim Space Fund have used substantially all of this cash (net of tax) to subscribe for 26,296,402 new ordinary shares in the Company at a price of 100p per share. These new ordinary shares rank pari passu with the existing ordinary shares in issue. The valuation is based on the volume-weighted average price per share for the interests owned by the Seraphim Space Fund in Arqit for the five days trading from and including the date of Arqit’s listing.
As a result of this issue, the total number of ordinary shares in issue now stands at 212,129,854 and the total number of voting rights in the Company is 212,129,854. There are no shares held in treasury.
The above figure of 212,129,854 may be used by shareholders as the denominator for the calculation by which they may determine if they are required to notify their interest in, or change to their interest in, the Company under the FCA’s Disclosure Guidance and Transparency Rules.
Applications have been made to the Financial Conduct Authority (the FCA) and the London Stock Exchange (the LSE) for the admission of 26,296,402 new ordinary shares to the premium listing segment of the Official List of the FCA and to trading on the main market for listed securities of the LSE. Admission is expected to take place at 8:00am on Wednesday, 22 September 2021.
Mark Boggett, CEO of Seraphim Space (Manager) LLP, the Company’s investment manager, says: “Arqit is building the world’s first global quantum key distribution network – delivering quantum safe cryptographic services from a constellation of low earth orbiting small satellites from 2023. This British company has the potential to revolutionise the transfer of secure data worldwide. We backed this company from seed stage investing every round up to its Nasdaq admission. We have great conviction in its outlook and in particular the ability of the experienced management team to execute against their growth plans. It has over USD130 million in contracts already from blue chip enterprise and government customers and USD1.1 billion in the pipeline. We are very proud to be a continuing part of its growth story.”
Will Whitehorn, Chair of Seraphim Space, says: “Arqit is yet another example of how Seraphim Space is backing industry leaders that are tackling some of the world’s most pressing issues. As a cybersecurity company specialising in next-generation encryption services, Arqit plays a crucial role in protecting against threats to the entire digital world, including financial services, automation and even security.”
