Viewbix has announced a non‑binding term sheet to acquire a 65 % equity stake in Quantum X Labs Ltd., an Israeli quantum‑computing and AI company. In exchange for the shares, Viewbix will issue common stock and pre‑funded warrants that give Quantum X Labs shareholders a majority of the post‑closing capital structure. The transaction is being financed by a $3 million private investment in public equity (PIPE) that will raise capital to fund the acquisition and support Viewbix’s balance sheet.
Viewbix’s recent financial results illustrate the urgency of the move. In the third quarter of 2024, the company reported revenue of $6.28 million, down 60 % from $15.71 million in the same period a year earlier, and a net loss of $695 000 versus a $1.78 million loss in Q3 2023. Operating and net margins were negative at –33 % and –131 %, respectively, reflecting a steep decline in ad‑tech demand and high operating costs. These figures underscore the company’s need to diversify its revenue base and strengthen its balance sheet.
Investors reacted sharply to the announcement, citing the dilutive nature of the $3 million PIPE and the strategic risk of acquiring a nascent quantum‑computing firm while Viewbix’s financials remain weak. The market’s negative response highlights concerns that the capital raise will dilute existing shareholders and that the integration of Quantum X Labs could strain Viewbix’s already thin margins.
The strategic rationale behind the deal is to pivot Viewbix away from its core ad‑tech business and into emerging technologies that promise higher growth potential. Quantum X Labs brings quantum‑algorithm research, physics expertise, and AI capabilities that could be leveraged to develop next‑generation advertising solutions and new product lines. By adding quantum computing to its portfolio, Viewbix aims to create differentiated offerings that could open new revenue streams and improve its competitive positioning against larger, more diversified technology firms.
The PIPE is structured at $3.75 per unit, with each unit comprising one common share and one pre‑funded warrant. Approximately 800,000 units will be sold, raising the $3 million target. The proceeds will be used primarily to fund the acquisition and to shore up Viewbix’s working capital. The pricing reflects the company’s current valuation and the need to balance investor appetite with the dilution impact on existing shareholders.
The transaction is expected to close in December 2025, contingent on satisfactory due diligence, regulatory approvals, and shareholder approval. Viewbix’s board has indicated that the deal will be finalized once these conditions are met, and the company will continue to monitor the integration process to ensure that the quantum‑computing capabilities are effectively incorporated into its product roadmap.
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