Quantum Computing (QUBT) said late Thursday it has agreed to a registered direct offering of 16 million shares of common stock at $2.50 per share for gross proceeds of $40 million.

The offering is expected to close Nov. 18.

The company said it intends to use net proceeds to pay down debt and for general corporate purposes.

Quantum Computing shares were down more than 24% in premarket activity Friday.

Price: 1.2600, Change: +0.01, Percent Change: +0.80