Mr. Eugene Profis reports

QUANTUMCORE ANNOUNCES TRANSFORMATIONAL ACQUISITION OF AVALANCHE PHOTONIQ TO CREATE A BROAD-BASED QUANTUM INFRASTRUCTURE SUPPLIER

Quantumcore Ltd. has entered into an agreement to acquire Avalanche PhotoniQ, a pioneer in next-generation single-photon detector technology, adding yet another critical piece of infrastructure for quantum computing.

The acquisition transforms Quantumcore into a broader quantum infrastructure platform serving multiple quantum computing architectures beyond superconducting systems. In addition to the company's superconducting traveling-wave parametric amplifiers (TWPAs), the transaction adds advanced single-photon detectors that are critical components in photonic quantum computing, quantum communication, quantum networking and optical sensing applications.

The acquisition includes Avalanche's intellectual property portfolio, including patent rights and a foundry-ready detector design that is expected to enter commercial manufacturing within the next 12 months. This provides Quantumcore with a near-term pathway to commercialization and establishes a second product platform alongside its superconducting amplifier business.

Under the terms of the transaction, Quantumcore will acquire 100 per cent of Avalanche for an aggregate purchase price of $2.0-million, consisting of $1.0-million in cash at closing, and $1.0-million payable in cash or common shares of Quantumcore, at the sellers' option, on the first anniversary of closing. In addition, the vendors will be eligible to receive milestone-based cash bonuses tied to future commercial revenue targets.

"This is an exciting acquisition for Quantumcore because it brings us a commercial-ready program with protected intellectual property and a foundry-ready device expected to enter manufacturing within the next 12 months," said Eugene Profis, chief executive officer of Quantumcore. "We are also excited to welcome Michael Reimer and his talented team to Quantumcore as we build a leading platform of photon detector technologies. By combining our superconducting amplifier platform with Avalanche's breakthrough detector technology, we are transforming Quantumcore into a diversified 'picks and shovels' supplier of critical infrastructure to the global quantum computing industry. This acquisition expands our addressable market well beyond superconducting qubits and positions us to supply critical infrastructure tools to photonic, trapped ion, neutral atom and quantum networking companies worldwide."

Expanding beyond superconducting quantum computing

Quantumcore was founded to develop enabling hardware that addresses two of the most significant challenges in scaling quantum computers: signal fidelity and thermal management. The company's initial focus has been on superconducting TWPAs, which amplify extremely weak qubit readout signals while generating minimal heat in cryogenic environments.

The acquisition of Avalanche extends this infrastructure strategy into a broader set of quantum architectures. High performance single-photon detectors are essential for:

• Reading qubit states in photonic quantum computers;
• Verifying entanglement across quantum networks;
• Increasing secure key rates in quantum communication systems;
• Satellite-based optical communications;
• Quantum sensing and advanced imaging applications.

About Avalanche PhotoniQ's technology

Avalanche PhotoniQ has developed a next-generation single-photon detector platform based on proprietary semiconductor metasurface technology. By engineering nanoscale structures that absorb light with near-perfect efficiency, Avalanche's detectors achieve both exceptionally high detection efficiency and precise timing resolution.

The technology offers a compact footprint and, in many applications, can operate without cryogenic cooling, opening opportunities in both quantum and non-quantum markets including biological imaging, CMOS failure analysis, and optical communications.

Building the infrastructure layer of quantum computing

Quantumcore believes that, like the semiconductor industry, the quantum computing sector will be supported by a specialized ecosystem of component suppliers that provide the essential technologies enabling all major system developers.

With the addition of Avalanche PhotoniQ, Quantumcore's product portfolio now includes two critical infrastructure categories:

• Superconducting traveling-wave parametric amplifiers (TWPAs);
• High performance single-photon detectors.

Together, these technologies position Quantumcore to serve a wide spectrum of quantum computing and quantum communication companies regardless of their underlying qubit architecture.

Closing conditions

The acquisition remains subject to customary closing conditions, including completion of due diligence, execution of definitive agreements and receipt of any required regulatory approvals.

About Quantumcore Ltd.

Quantumcore is a Canadian quantum infrastructure company focused on developing mission-critical hardware that enables the scaling of quantum computing systems. The company is commercializing superconducting traveling-wave parametric amplifiers and other enabling technologies designed to become the essential "picks and shovels" of the global quantum industry.