Mr. Michael Trzupek reports

XANADU ANNOUNCES $300 MILLION SYNTHETIC AT-THE-MARKET PROGRAM

Xanadu Quantum Technologies Ltd. has entered into a synthetic at-the-market equity facility for up to $300-million with YA II PN Ltd. (Yorkville Advisors). The company intends to use the net proceeds, if any, for working capital and general corporate purposes.

The program provides Xanadu with the ability, but not the obligation, to issue and sell to Yorkville Advisors up to $300-million of its Class B subordinate voting shares in private placements over a term of three years, subject to certain limitations and conditions in the standby equity purchase agreement between Xanadu and Yorkville Advisors dated May 20, 2026 (the SEPA). The company expects to access the program opportunistically, based on prevailing market conditions and valuation levels it believes to be favourable to shareholder value.

Any net proceeds from the program will be received directly by the company. The program consists exclusively of treasury offerings by the company, with no secondary sales by existing shareholders. In connection with the launch of the program, the company plans to file a registration statement on Form F-1 with the U.S. Securities and Exchange Commission (the SEC), to qualify the resale of shares issued pursuant to the program by Yorkville Advisors in accordance with applicable U.S. securities laws.

"The program will provide us with efficient and flexible access to capital as we continue scaling and executing on our long-term road map towards fault-tolerant quantum computing," said Michael Trzupek, chief financial officer of Xanadu. "Our objective is to strategically and prudently tap the equity market to enable us to remain well positioned to fund our growth strategy."

A copy of the SEPA will be filed with the SEC and the Canadian Securities Administrators. The descriptions contained in this press release are summaries only, do not purport to be complete, and are qualified in their entirety by reference to the agreement furnished as an exhibit to the company's Form 6-K filed with the SEC (Securities and Exchange Commission) as of this date.

About Xanadu Quantum Technologies Ltd.

Founded in 2016, Xanadu is a Canadian photonic quantum computing company with the mission to build quantum computers that are useful and available to people everywhere. Xanadu is building fault-tolerant quantum computers using light, with systems designed to compute at room temperature. Backed by more than $500-million (U.S.) in historical funding, Xanadu develops both hardware and software, including PennyLane, its open-source quantum computing platform. Xanadu is the first pure-play photonic quantum computing company to list on public markets (Nasdaq/Toronto Stock Exchange: XNDU) and is recognized globally for its breakthroughs in scalable quantum technologies.

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