The Globe and Mail reports in its Tuesday edition that for the vast majority of Xanadu Quantum Technologies shareholders, watching the share price of the newly public company has been a gut-wrenching daily experience they can't do anything about. The Globe's Sean Silcoff reports that Monday was no exception.
After rising by 24 per cent on Friday, its shares crashed by 61.3 per cent Monday, the same day the company filed a prospectus enabling shareholders to register their stock for sale.
The price drop triggered a temporary trading halt on the Toronto Stock Exchange at the behest of the Canadian Investment Regulatory Organization.
The stock has traded for as little as $7.44 (U.S.) and as much as $42.44 (U.S.) in the past five weeks. It closed at $13.99 (U.S.) on Monday.
The industry is in its infancy and no company, including Xanadu, has yet produced a commercially relevant quantum computer that can achieve the technology's full potential, though several are valued into the billions of dollars. Short sellers have targeted several quantum companies, including Xanadu.
Furthermore, Xanadu has a thin float, meaning very few of its shares have been available to buy and sell, exacerbating the stock's extreme movements.
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