Xanadu Expands Partnership with A*STAR to Advance Photonic Quantum Computing
Rhea-AI Summary
Xanadu (Nasdaq:CHAC) signed a Memorandum of Understanding with A*STAR to expand collaboration in Singapore by adding A*STAR IHPC and A*STAR Q.InC to an existing relationship with A*STAR IME.
The partners intend to pursue joint R&D on photonic quantum computing, including GKP error mitigation, quantum light sources, integrated photonic connectivity, packaging, ASIC integration, and potential hosting of photonic quantum computers in Singapore.
Separately, Xanadu announced a business combination with Crane Harbor Acquisition Corp. that would create NewCo with approximately US$500 million of gross proceeds (about $225M from Crane Harbor’s trust and $275M from committed investors) and a planned Nasdaq and Toronto listing.
Positive
- MoU expansion adds A*STAR IHPC and A*STAR Q.InC
- Joint R&D targets GKP error mitigation and photonic hardware
- $500M expected gross proceeds for NewCo (225M trust + 275M PIPE)
- Planned public listing on Nasdaq and Toronto Stock Exchange
Negative
- Capitalization figure assumes no redemptions from Crane Harbor public stockholders
- Business combination completion is conditional on closing the transaction
News Market Reaction
On the day this news was published, CHAC declined 0.80%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
No peer stocks with notable momentum or same-day headlines were identified for the Blank Checks sector, pointing to a stock-specific setup around CHAC.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Nov 25 | Tech milestone news | Positive | -0.7% | Quantum airflow collaboration and reminder of planned CHAC–Xanadu business combination. |
| Nov 24 | F-4 submission | Positive | +1.5% | Confidential Form F-4 filing detailing valuation and expected gross proceeds for NewCo. |
| Nov 06 | DARPA advancement | Positive | -3.6% | Progress to Stage B of DARPA Quantum Benchmarking plus recap of planned combination. |
| Nov 03 | Business combination | Positive | +11.8% | Definitive agreement for CHAC–Xanadu merger to form pure-play photonic quantum company. |
Recent Xanadu/CHAC news has produced mixed reactions, with two positive and two negative moves on generally constructive strategic and transaction updates.
Over the last month, CHAC headlines have focused on the proposed business combination with Xanadu and validation of Xanadu’s quantum technology. On Nov 3, the definitive deal to create a pure-play photonic quantum computing public company drove a 11.78% gain. Subsequent Form F‑4 and valuation disclosures around US$3.1B enterprise value and US$500M gross proceeds saw a modestly positive move on Nov 24 but mild pullbacks on DARPA funding and jet‑engine simulation updates. Today’s A*STAR partnership further reinforces the same strategic trajectory.
Market Pulse Summary
This announcement deepens Xanadu’s R&D footprint in Singapore through an expanded A*STAR collaboration while reiterating that the combined NewCo expects roughly US$500 million in gross proceeds from CHAC’s trust and a private placement. In context of earlier business combination and DARPA-related milestones, it reinforces a strategy focused on photonic quantum scale‑up. Investors may focus on future SEC filings, closing progress toward the proposed listing, and evidence that joint projects translate into commercially relevant quantum capabilities.
Key Terms
photonic quantum computing technical
memorandum of understanding regulatory
special purpose acquisition company financial
quantum light sources technical
integrated photonic chips technical
asic technical
fault-tolerant quantum computers technical
AI-generated analysis. Not financial advice.
Strategic agreement broadens Xanadu’s presence in Singapore
TORONTO, Dec. 08, 2025 (GLOBE NEWSWIRE) -- Xanadu Quantum Technologies Inc. (“Xanadu”), a leading photonic quantum computing company, today announced it has signed a Memorandum of Understanding (“MoU”) with the Agency for Science, Technology and Research (“A*STAR”) in Singapore. This agreement builds on Xanadu’s existing partnership with A*STAR Institute of Microelectronics (A*STAR IME) and extends to include the A*STAR Institute of High Performance Computing (A*STAR IHPC) and A*STAR Quantum Innovation Centre (A*STAR Q.InC). Together, Xanadu and A*STAR intend to advance research and development in quantum technologies, with the goal of establishing long-term research collaborations and exploring the potential of creating joint quantum laboratories and operations in Singapore.
Quantum technology developments are advancing rapidly as governments and industries increase investments to bring practical value to various industries such as AI, aerospace, pharmaceuticals, chemistry, and more. A*STAR has strong capabilities in photonics heterogenous integration, quantum sensing, quantum software and algorithms, quantum materials and devices, semiconductors, and advanced packaging. Combining Xanadu’s deep expertise in photonic quantum computing hardware, software, and algorithms with A*STAR’s leading reputation in research and technology translation is expected to strengthen critical research efforts and has the potential to support future quantum technology developments.
Xanadu and A*STAR intend to collaborate on quantum-focused projects, including error mitigation for GKP state generation, the development of quantum light sources, quantum connectivity using integrated photonic chips, packaging and custom ASIC integration, and the potential hosting of photonic quantum computers in Singapore, aimed at delivering the next generation of quantum research and innovation.
“This expanded collaboration with A*STAR enables us to progress our photonic quantum computing platform and accelerate our path to deliver fault-tolerant quantum computers that can solve real-world problems,” said Christian Weedbrook, Founder and CEO of Xanadu. “By combining our strengths with A*STAR research capabilities in these critical areas, we're furthering our mission to build quantum computers that are useful and available to people everywhere and position Xanadu to lead the next wave of quantum innovation from Singapore.”
“A*STAR has developed strengths in semiconductor technologies, including integrated photonics and advanced packaging,” said Prof Yeo Yee Chia, Deputy Chief Executive (Innovation & Enterprise), A*STAR. “We are excited to deploy our research expertise, design capabilities and industry-grade facilities to help companies shorten development cycles and create a pathway from early-stage quantum concepts to manufacturable solutions. This collaboration will enable both teams to explore new approaches in photonic quantum hardware and software stack, strengthening Singapore’s position as a trusted partner for companies developing the next generation of quantum technologies.”
Business Combination
Xanadu recently announced a business combination agreement with Crane Harbor Acquisition Corp. (Nasdaq: CHAC), a publicly traded special purpose acquisition company (“Crane Harbor”). The combined company, Xanadu Quantum Technologies Limited (“NewCo”), is expected to be capitalized with approximately US
About Xanadu
Xanadu is a Canadian quantum computing company with the mission to build quantum computers that are useful and available to people everywhere. Founded in 2016, Xanadu has become one of the world's leading quantum hardware and software companies. The company also leads the development of PennyLane, an open-source software library for quantum computing and application development. Visit xanadu.ai or follow us on X @XanaduAI.
About Crane Harbor Acquisition Corp.
Crane Harbor Acquisition Corp. is a blank check company formed for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses.
About the Agency for Science, Technology and Research (A*STAR)
The Agency for Science, Technology and Research (A*STAR) is Singapore's lead public sector R&D agency. Through open innovation, we collaborate with our partners in both the public and private sectors to benefit the economy and society. As a Science and Technology Organisation, A*STAR bridges the gap between academia and industry. Our research creates economic growth and jobs for Singapore, and enhances lives by improving societal outcomes in healthcare, urban living, and sustainability. A*STAR plays a key role in nurturing scientific talent and leaders for the wider research community and industry. A*STAR’s R&D activities span biomedical sciences to physical sciences and engineering, with research entities primarily located in Biopolis and Fusionopolis. For ongoing news, visit www.a-star.edu.sg.
Additional Information About the Proposed Transaction and Where to Find It
The proposed business combination transaction will be submitted to shareholders of Crane Harbor and Xanadu for their consideration. NewCo and Crane Harbor have jointly confidentially submitted a draft registration statement on Form F-4 (the “Registration Statement”) to the U.S. Securities and Exchange Commission (the “SEC”). The Registration Statement includes a proxy statement/prospectus to be distributed to Crane Harbor’s shareholders in connection with Crane Harbor’s solicitation of proxies for the vote by Crane Harbor’s shareholders in connection with the proposed transaction and other matters to be described in the Registration Statement, as well as the prospectus relating to the offer of the securities to be issued to Xanadu’s shareholders in connection with the completion of the proposed transaction. After the Registration Statement has been publicly filed and declared effective by the SEC, a definitive proxy statement/prospectus and other relevant documents will be mailed to Crane Harbor shareholders as of the record date established for voting on the proposed transaction. Before making any voting or investment decision, Crane Harbor’s shareholders and other interested persons are advised to read, once available, the preliminary proxy statement/prospectus and any amendments thereto and, once available, the definitive proxy statement/prospectus, as well as other documents filed with the SEC by NewCo and/or Crane Harbor in connection with the proposed transaction, as these documents will contain important information about NewCo, Crane Harbor, Xanadu and the proposed transaction. Shareholders may obtain a copy of the preliminary or definitive proxy statement/prospectus, once available, as well as other documents filed by NewCo and/or Crane Harbor with the SEC, without charge, at the SEC’s website located at www.sec.gov, Crane Harbor’s website at www.craneharboracquisition.com or by emailing investors@xanadu.ai.
Forward-Looking Statements
This communication includes “forward-looking statements” within the meaning of the U.S. federal securities laws and “forward-looking information” within the meaning of applicable Canadian securities laws (collectively, “forward-looking statements”). Forward-looking statements may be identified by the use of words such as “estimate,” “plan,” “project,” “forecast,” “intend,” “will,” “expect,” “anticipate,” “believe,” “seek,” “target,” “continue,” “could,” “may,” “might,” “possible,” “potential,” “predict” or similar expressions that predict or indicate future events or trends or that are not statements of historical matters. We have based these forward-looking statements on current expectations and projections about future events. These statements include: the stock exchanges on which the shares of the combined company are expected to trade; proceeds from the business combination and related PIPE; funds received by the combined company from Crane Harbor’s trust account and redemptions by Crane Harbor’s public shareholders; Xanadu and A*STAR’s ability to advance research and development in quantum technologies Xanadu and A*STAR’s ability to establish a long-term research collaboration and the expected benefits of the MoU and its ability to strengthen critical research efforts to support future quantum technology developments.
These forward-looking statements are provided for illustrative purposes only and are not intended to serve as, and must not be relied on as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions, many of which are beyond the control of Xanadu and Crane Harbor. These forward-looking statements are subject to known and unknown risks, uncertainties and assumptions that may cause the actual results of the combined company following the proposed transaction, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such statements. Such risks and uncertainties include: that Xanadu is pursuing an emerging technology, faces significant technical challenges and may not achieve commercialization or market acceptance; Xanadu’s historical net losses and limited operating history; that there is substantial doubt about Xanadu's ability to continue as a going concern; Xanadu’s expectations regarding future financial performance, capital requirements and unit economics; Xanadu’s use and reporting of business and operational metrics; Xanadu’s competitive landscape; Xanadu’s dependence on members of its senior management and its ability to attract and retain qualified personnel; the potential need for additional future financing; Xanadu’s ability to manage growth and expand its operations; potential future acquisitions or investments in companies, products, services or technologies; Xanadu’s reliance on strategic partners and other third parties; Xanadu’s concentration of revenue in contracts with government or state-funded entities; Xanadu’s ability to maintain, protect and defend its intellectual property rights; risks associated with privacy, data protection or cybersecurity incidents and related regulations; the use, rate of adoption, and regulation of artificial intelligence and machine learning; uncertainty or changes with respect to laws and regulations; uncertainty or changes with respect to taxes, trade conditions and the macroeconomic environment; material weaknesses in Xanadu's internal control over financial reporting and the combined company’s ability to maintain internal control over financial reporting and operate as a public company; the possibility that required shareholder and regulatory approvals for the proposed transaction are delayed or are not obtained, which could adversely affect the combined company or the expected benefits of the proposed transaction; the risk that shareholders of Crane Harbor could elect to have their shares redeemed, leaving the combined company with insufficient cash to execute its business plans; the occurrence of any event, change or other circumstance that could give rise to the termination of the business combination agreement; the outcome of any legal proceedings or government investigations that may be commenced against Xanadu or Crane Harbor; failure to realize the anticipated benefits of the proposed transaction; the ability of Crane Harbor or the combined company to issue equity or equity-linked securities in connection with the proposed transaction or in the future; and other factors described in Crane Harbor’s filings with the SEC. These forward-looking statements are based on certain assumptions, including that none of the risks identified above materialize; that there are no unforeseen changes to economic and market conditions, and that no significant events occur outside the ordinary course of business. Additional information concerning these and other factors that may impact such forward-looking statements can be found in filings and potential filings by Xanadu, Crane Harbor or the combined company resulting from the proposed transaction with the SEC, including under the heading “Risk Factors.” If any of these risks materialize or assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. In addition, these statements reflect the expectations, plans and forecasts of Xanadu’s and Crane Harbor’s management as of the date of this communication; subsequent events and developments may cause their assessments to change. While Xanadu and Crane Harbor may elect to update these forward-looking statements at some point in the future, they specifically disclaim any obligation to do so, unless required by applicable securities laws. Accordingly, undue reliance should not be placed upon these statements.
In addition, statements that “we believe” and similar statements reflect our beliefs and opinions on the relevant subject. These statements are based upon information available to us as of the date of this presentation, and while we believe such information forms a reasonable basis for such statements, such information may be limited or incomplete, and our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information. These statements are inherently uncertain and investors are cautioned not to unduly rely upon these statements.
An investment in Crane Harbor is not an investment in any of Crane Harbor’s founders’ or sponsors’ past investments, companies or affiliated funds. The historical results of those investments are not indicative of future performance of Crane Harbor, which may differ materially from the performance of Crane Harbor’s founders’ or sponsors’ past investments.
No Offer or Solicitation
This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities, or a solicitation of any vote or approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. This communication is not, and under no circumstances is to be construed as, a prospectus, an advertisement or a public offering of the securities described herein in the United States or any other jurisdiction. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended, or exemptions therefrom. INVESTMENT IN ANY SECURITIES DESCRIBED HEREIN HAS NOT BEEN APPROVED BY THE SEC OR ANY OTHER REGULATORY AUTHORITY NOR HAS ANY AUTHORITY PASSED UPON OR ENDORSED THE MERITS OF THE OFFERING OR THE ACCURACY OR ADEQUACY OF THE INFORMATION CONTAINED HEREIN. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. This press release is not, and under no circumstances is to be construed as, a prospectus, an advertisement or a public offering in any province or territory of Canada. In addition, no securities commission or similar regulatory authority in Canada has reviewed or in any way passed upon this press release or the merits of any of the securities described herein and any representation to the contrary is an offense.
Participants in the Solicitation
NewCo, Crane Harbor, Xanadu and certain of their respective directors, executive officers and other members of management and employees may, under SEC rules, be deemed to be participants in the solicitation of proxies from Crane Harbor’s shareholders in connection with the proposed transaction. Information regarding the persons who may, under SEC rules, be deemed participants in the solicitation of Crane Harbor’s shareholders in connection with the proposed transaction will be set forth in proxy statement/prospectus when it is filed by NewCo with the SEC. You can find more information about Crane Harbor’s directors and executive officers in Crane Harbor’s final prospectus related to its initial public offering filed with the SEC on April 25, 2025 and in the subsequent Quarterly Reports on Form 10-Q filed by Crane Harbor with the SEC. Additional information regarding the participants in the proxy solicitation and a description of their direct and indirect interests will be included in the proxy statement/prospectus when it becomes available. Shareholders, potential investors and other interested persons should read the proxy statement/prospectus carefully when it becomes available before making any voting or investment decisions. You may obtain free copies of these documents from the sources described above.
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FAQ
What does the Xanadu and A*STAR MoU announced December 8, 2025 involve for CHAC shareholders?
How much funding will NewCo have after the Xanadu and Crane Harbor (CHAC) deal?
Will Xanadu (CHAC) be listed on public exchanges after the business combination?
What specific quantum projects will Xanadu and A*STAR collaborate on under the MoU?
Does the announced $500M capitalization guarantee funding for Xanadu (CHAC)?
How might the A*STAR partnership affect Xanadu's operations in Singapore?
