Rigetti Computing's stock plummeted 7.23% intraday on Tuesday, as investors reacted negatively to news of significant new financial commitments by the company.
The sharp decline followed the announcement that Rigetti's subsidiary, Rigetti & Co, signed a sublease for approximately 12,543 square feet of office and laboratory space in Berkeley, California. The agreement, which runs through November 2029, requires monthly base rent starting at $38,111.91 and increasing to $41,645.91 in the fourth year, plus a $50,000 security deposit and responsibility for 11.19% of taxes, insurance, and operating expenses.
Market participants appeared to interpret the substantial lease commitment as adding to the company's operational costs and cash burn, potentially delaying profitability milestones in the competitive quantum computing sector.
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