IonQ shares fall after $2 billion equity offering

IonQ Inc. shares dropped nearly 5.9% in morning trading on Wednesday after the company announced a $2.0 billion equity offering.

The offering includes 20.5 million common shares and pre-funded warrants for 29.5 million shares, both priced at $40.00. The company also issued seven-year warrants allowing the purchase of 100 million additional shares at $69.46 each. An entity managed by Heights Capital Management purchased the offering.

The announcement came days after IonQ disclosed on October 12 a definitive agreement to acquire cybersecurity firm Elisity in an all-stock transaction valued at up to $1.3 billion. The deal includes up to $150 million in performance-based earnouts.

The Elisity acquisition had already pushed the stock down roughly 9% on October 12. The all-stock structure raised concerns about share count expansion. IonQ did not disclose revenue figures for Elisity.

Following the Elisity announcement, Wedbush reiterated an Outperform rating with a $75 price target. Mizuho maintained an Outperform rating with a $52 price target.

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