Quantum eMotion Advances Quantum-Secure Root-of-Trust Technology Through Collaboration with Taiwan-based Semiconductor Firm

Rhea-AI Summary

Quantum eMotion (NYSE American: QNC) announced it will receive advisory services and up to $600,000 in non-dilutive NRC IRAP support for a cross-border R&D project with Taiwan-based JMEM Tek. The joint program represents over $2.5 million in combined development investment to build a quantum-secure SoC with a silicon Root of Trust and advanced PUF identity.

The effort targets secure boot, key lifecycle management, hardware cryptographic acceleration and deployment across AI, cloud, financial, defense, healthcare and critical-infrastructure systems.

Positive

• $600,000 non-dilutive NRC IRAP advisory and funding support
• Joint R&D investment totaling over $2.5 million
• Development of a silicon-level Root of Trust with integrated PUF identity
• Targeted deployment across AI, cloud, financial, defense and critical infrastructure

Negative

• None.

News Market Reaction – QNC

-13.51% 1.8x vol

24 alerts

-13.51% News Effect

+2.1% Peak Tracked

-10.4% Trough Tracked

-$99M Valuation Impact

$631M Market Cap

1.8x Rel. Volume

On the day this news was published, QNC declined 13.51%, reflecting a significant negative market reaction. Argus tracked a peak move of +2.1% during that session. Argus tracked a trough of -10.4% from its starting point during tracking. Our momentum scanner triggered 24 alerts that day, indicating elevated trading interest and price volatility. This price movement removed approximately $99M from the company's valuation, bringing the market cap to $631M at that time. Trading volume was above average at 1.8x the daily average, suggesting increased trading activity.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

NRC IRAP funding: $600,000 Joint R&D investment: $2.5 million KROWN tokens secured: 45,000,000,000 tokens +5 more

8 metrics

NRC IRAP funding $600,000 Advisory services and non-dilutive funding for R&D project

Joint R&D investment $2.5 million Combined development investment with JMEM Tek

KROWN tokens secured 45,000,000,000 tokens Secured via quantum-derived entropy (QRNG2) on Mar 6, 2026

Value of KROWN tokens $67.5 million Protected in on-chain vesting lockers

Vesting go-live date March 6, 2026 KROWN token vesting contracts became operational

Market cap $615,449,570 Pre-news market capitalization

Public float 211,324,532 shares Shares available for trading

52-week range $2.85–$4.44 Pre-news 52-week low and high

Market Reality Check

Price: $2.38 Vol: Volume 472,539 vs. 20-day...

normal vol

$2.38 Last Close

Volume Volume 472,539 vs. 20-day average 457,360 (relative volume 1.03x) shows only slightly elevated trading ahead of this announcement. normal

Technical Price 2.96 is trading below the 200-day MA at 3.34, with shares also 33.33% under the 52-week high.

Historical Context

1 past event · Latest: Mar 06 (Positive)

Pattern 1 events

Date	Event	Sentiment	Move	Catalyst
Mar 06	Quantum security deployment	Positive	+2.1%	Deployment securing KROWN tokens with quantum entropy-based infrastructure.

Pattern Detected

Limited history shows a prior positive reaction to quantum-security partnership news, contrasting with today’s pre-news decline.

Recent Company History

In the last six months, Quantum eMotion reported a key deployment on March 6, 2026, securing 45,000,000,000 KROWN tokens (about $67.5 million) using its QRNG2 technology, which coincided with a 2.13% price gain. Today’s announcement adds a cross-border R&D collaboration with JMEM Tek backed by up to $600,000 in non-dilutive NRC IRAP funding within a $2.5 million joint development effort, extending the company’s trajectory in applied quantum-secure infrastructure.

Market Pulse Summary

The stock dropped -13.5% in the session following this news. A negative reaction despite supportive ...

Analysis

The stock dropped -13.5% in the session following this news. A negative reaction despite supportive non-dilutive funding contrasts with earlier partnership news that coincided with a 2.13% gain. With the stock trading below its 200-day MA at 3.34, sentiment might have been sensitive to execution risk around monetizing quantum-secure hardware. Past history is limited, so large moves could have reflected positioning and liquidity rather than a clear break from prior fundamentals.

Key Terms

system-on-chip (soc), root of trust, physically unclonable function (puf), quantum-grade entropy, +3 more

7 terms

system-on-chip (soc) technical

"The funded project focuses on the development of a next-generation secure System-on-Chip (SoC) platform..."

A system-on-chip (SoC) is a single microchip that packs the main electronic components of a computer — such as the processor, memory, graphics and input/output controllers — that would otherwise be separate parts. Like a Swiss Army knife replacing multiple tools, an SoC reduces size, power use and manufacturing cost while shaping device performance and features, so investors watch it as a key driver of product competitiveness, margins and market share.

root of trust technical

"designed to embed a hardware Root of Trust directly at the silicon level."

A root of trust is a small, tamper-resistant component inside a device or system that serves as the secure anchor for identity and data protection—think of it as a locked safe that holds the master keys and proof that the system is genuine. It matters to investors because a strong root of trust reduces the risk of hacks, supports regulatory compliance and customer confidence, and therefore can protect a product’s value and a company’s reputation.

physically unclonable function (puf) technical

"Advanced Physically Unclonable Function (PUF) technology for device-unique identity"

A physically unclonable function (PUF) is a built‑in hardware feature that creates a unique, hard‑to‑copy digital fingerprint from tiny, random manufacturing differences in a chip or device. For investors, PUFs matter because they provide a low‑cost, tamper‑resistant way to authenticate devices and protect data, which can reduce fraud, support premium product features, and influence demand and competitiveness in markets for secure electronics and IoT devices.

quantum-grade entropy technical

"QeM's proprietary quantum-grade entropy generation"

Quantum-grade entropy is truly unpredictable randomness generated from quantum processes rather than from predictable computer routines. For investors, it matters because randomness underpins secure encryption, digital signatures, fair lotteries and some blockchain functions—so stronger, verifiable randomness reduces the risk of hacks, fraud or spoiled contracts in systems that protect financial data and value, much like an unforgeable lock versus a cheaply made one.

on-chain vesting lockers technical

"are secured in on‑chain vesting lockers supported by UNCX infrastructure..."

On-chain vesting lockers are automated blockchain contracts that hold tokens and release them according to a preset schedule or conditions, like a timed safety deposit box that opens gradually. They matter to investors because they make token release transparent and enforceable without middlemen, reducing the risk of sudden large sell-offs and signaling that insiders’ and project incentives are aligned over time.

hardware-based cryptographic acceleration technical

"The architecture will integrate:QeM's proprietary quantum-grade entropy generationHardware-based cryptographic acceleration..."

Hardware-based cryptographic acceleration is using a dedicated chip or built-in processor to carry out encryption and decryption tasks much faster and with less energy than general-purpose software running on a standard CPU. Think of it as a specialized kitchen appliance that performs a single job quickly and efficiently; for investors, it matters because it can improve transaction speed, reduce operating costs, enhance security, and support higher volumes—factors that affect product performance, margins, and competitive advantage.

secure boot technical

"this creates a robust foundation for secure boot, authentication, firmware integrity validation..."

Secure boot is a built‑in firmware feature that checks the software a device starts with—like a bouncer checking IDs—allowing only software with a trusted digital seal to run. For investors it matters because it reduces the risk of malware, fraud or tampering that can harm a product’s reputation, trigger recalls or invite regulation, and therefore affects a company’s cybersecurity costs, customer trust and long‑term value.

AI-generated analysis. Not financial advice.

Montreal, Quebec--(Newsfile Corp. - March 17, 2026) - Quantum eMotion Corp. (NYSE American: QNC) (TSXV: QNC) (FSE: 34Q0) ("QeM" or the "Company"), a leader in quantum-secure cybersecurity solutions, is pleased to announce that it is receiving advisory services and funding of up to $600,000 from the National Research Council of Canada Industrial Research Assistance Program (NRC IRAP) to support a research and development project focused on quantum-secure semiconductor technology in collaboration with JMEM Tek.

The non-dilutive funding supports a strategic cross-border, collaborative R&D initiative conducted in partnership with JMEM Tek, a Taiwan-based semiconductor technology company specializing in secure chip design. The joint R&D project represents over $2.5 million in combined development investment, focused on advancing next-generation quantum-secure hardware architectures and strengthening cross-border innovation in trusted semiconductor technologies.

This project strengthens innovation links between the Canadian and Taiwanese technology firms, while accelerating the development of next-generation trusted semiconductor technologies.

Building a Quantum-Secure Hardware Root of Trust

The funded project focuses on the development of a next-generation secure System-on-Chip (SoC) platform designed to embed a hardware Root of Trust directly at the silicon level.

The architecture will integrate:

• QeM's proprietary quantum-grade entropy generation
• Hardware-based cryptographic acceleration
• A silicon-level Root of Trust
• Advanced Physically Unclonable Function (PUF) technology for device-unique identity
• Secure key generation, storage, and lifecycle management

The integration of PUF technology enables each chip to possess a mathematically unique and unclonable identity derived from intrinsic physical characteristics of the silicon itself. When combined with quantum-grade entropy, this creates a robust foundation for secure boot, authentication, firmware integrity validation, and cryptographic key protection.

This secure-by-design approach is intended to protect critical systems from hardware tampering, cloning, firmware injection, and advanced cyberattacks — including future quantum-enabled threats.

NRC IRAP support will assist QeM in advancing its research and development activities in quantum-secure semiconductor technology.

"This NRC IRAP support is a significant milestone," said Francis Bellido, CEO of Quantum eMotion. "By combining quantum entropy, PUF-based device identity, and hardware Root-of-Trust architecture, we are laying the silicon foundation for next-generation trusted computing. Our collaboration with JMEM reinforces the leadership of Canadian and Taiwanese innovators in secure semiconductor innovation at a time when digital sovereignty and hardware security are becoming mission-critical."

Securing AI, Cloud, and Critical Infrastructure

The secure SoC platform is being designed for deployment across:

• AI data centres and high-performance computing
• Cloud infrastructure and edge systems
• Financial and digital asset platforms
• Defense and government systems
• Healthcare and digital health networks
• Energy and critical infrastructure environments

By embedding a quantum-secure Root of Trust and PUF identity at the chip level, the architecture aims to provide scalable trust anchoring for next-generation digital ecosystems.

Strengthening Trusted Semiconductor Supply Chains

In the context of growing global focus on semiconductor resilience and hardware-level cyber threats, this collaboration between Canadian and Taiwanese companies contributes to:

• Trusted supply-chain development
• Secure chip manufacturing collaboration
• Resilient international technology partnerships
• Post-quantum-ready hardware infrastructure

The Company anticipates achieving key development milestones over the coming phases and will provide updates as the program advances.

About Quantum eMotion

The Company's mission is to address the growing demand for affordable hardware and software security for connected devices. Thanks to its patented Quantum Random Number Generator, QeM has become a pioneering force in classical and quantum cybersecurity solutions. This security solution exploits quantum mechanics' built-in unpredictability and promises to provide enhanced protection for high-value assets and critical systems. For further information, please visit our website at https://www.quantumemotion.com or contact us at: info@quantumemotion.com.

The Company intends to target highly valued Financial Services, Healthcare, Blockchain Applications, Cloud-Based IT Security Infrastructure, Classified Government Krown Technologies and Communication Systems, Secure Device Keying (IOT, Automotive, Consumer Electronics) and Quantum Cryptography.

For further information, please visit our website at https://www.quantumemotion.com or contact:

Francis Bellido, Chief Executive Officer Tel: 514.956.2525
Email: info@quantumemotion.com
Website: www.quantumemotion.com

Cautionary Note regarding Forward-Looking Statements

This news release contains "forward-looking information" within the meaning of applicable securities laws, which is based upon the Company's current internal expectations, estimates, projections, assumptions and beliefs. Such forward-looking statements and forward-looking information include, but are not limited to, statements concerning the Company's expectations with respect to the commencement of trading of the Company's common shares on NYSE American; the expected cessation of trading on the OTCQB; the anticipated benefits of the NYSE American listing; and the Company's business strategy, target markets and growth initiatives. Forward-looking statements or forward-looking information relate to future events and future performance and include statements regarding the expectations and beliefs of management based on information currently available to the Company. Such forward-looking statements and forward-looking information often, but not always, can be identified by the use of words such as "plans", "expects", "potential", "is expected", "anticipated", "is targeted", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or the negatives thereof or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements or forward-looking information are subject to a variety of risks and uncertainties which could cause actual events or results to differ materially from those reflected in the forward-looking statements or forward-looking information, including, without limitation, risks and uncertainties relating to delays in or failure to complete listing-related processes, the Company's ability to maintain compliance with applicable exchange requirements, changes in market conditions, the value of the Company's intangible assets, completing proof of concept studies, protecting intangible assets rights, timing and availability of external financing on acceptable terms or at all, the possibility that future results will not be consistent with the Company's expectations, increases in costs, changes in legislation and regulation, changes in economic and political conditions and other risks inherent to the cybersecurity industry and new technologies, such as risk of obsolescence, slow adoption and competing technological advances; and those risks set out in the Company's public documents filed on SEDAR+ at www.sedarplus.ca.

Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements or forward-looking information. Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that could cause results not to be as anticipated, estimated or intended. For more information on the Company and the risks and challenges of its business, investors should review the Company's annual filings that are available at www.sedarplus.ca. The Company provides no assurance that forward-looking statements or forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements and information. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking information.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/288815

FAQ

What funding did Quantum eMotion (QNC) announce on March 17, 2026?

Quantum eMotion announced up to $600,000 in NRC IRAP advisory and funding support. According to the company, this non-dilutive support backs a cross-border R&D program with JMEM Tek totaling over $2.5 million in combined development investment.

What is the goal of the QNC and JMEM Tek collaboration announced March 17, 2026?

The goal is to develop a next-generation quantum-secure SoC with a silicon Root of Trust. According to the company, the design integrates quantum-grade entropy, PUF device identity, cryptographic acceleration, and secure key lifecycle management.

How will QNC's planned secure SoC be used across industries?

The secure SoC is designed for AI data centres, cloud and edge systems, finance, defense, healthcare and critical infrastructure. According to the company, embedding a PUF-based Root of Trust aims to provide scalable trust anchoring for those digital ecosystems.

Does the QNC announcement on March 17, 2026 mention commercialization timelines or milestones?

The company anticipates achieving key development milestones over coming phases but did not specify dates. According to the company, updates will be provided as the program advances toward development milestones and deployment readiness.

What specific security features will QNC's SoC architecture include in the March 17, 2026 announcement?

The architecture will include quantum-grade entropy, hardware cryptographic acceleration, silicon Root of Trust and advanced PUF identity. According to the company, these features aim to protect against hardware tampering, cloning, firmware injection, and future quantum-enabled threats.