Redwood AI announced that it has entered into a share purchase agreement to acquire Quantum.IQ Technologies. The agreement follows Redwood’s previously announced May 28, 2026 update regarding the proposed transaction.
Quantum.IQ is a Vancouver-based AI-driven quantum cybersecurity company developing software for post-quantum cryptography and enterprise security infrastructure modernization.
The acquisition is expected to expand Redwood’s technology platform into quantum-resistant cybersecurity, cryptographic intelligence, and enterprise security infrastructure modernization.
Redwood said the deal will complement its broader focus on artificial intelligence, advanced computational technologies, regulated industries, public-sector deployments, and security-sensitive applications.
Quantum.IQ’s platform is designed to help high-security organizations discover, assess, manage, and upgrade the encryption systems they use to protect sensitive data from future quantum-enabled cyber threats.
The company’s target customers include government, defense, financial services, and critical infrastructure organizations.
Quantum.IQ’s post-quantum cryptography platform supports cryptographic asset discovery, cryptographic exposure assessment, cryptographic bill of materials creation, standards alignment, vulnerability management, migration planning, continuous monitoring, and executive-level reporting.
The software is also designed to help organizations identify exposure across certificates, transport layer security configurations, application programming interfaces, source code, and related digital infrastructure.
Redwood said the acquisition could broaden its addressable market beyond AI and operational intelligence into post-quantum cybersecurity, cryptographic infrastructure management, enterprise resilience, and critical infrastructure modernization.
Under the agreement, Redwood will acquire all issued and outstanding shares of Quantum.IQ in exchange for up to 14,033,558 common shares of Redwood at a deemed price of approximately $2.98 per share.
The consideration includes 7,033,558 base shares and up to 7 million milestone shares.
The base shares will be held in escrow and released over a 24-month schedule. The milestone shares will be released only if Quantum.IQ achieves certain milestones, including the execution of an initial customer pilot agreement and annualized revenue targets of $2 million, $10 million, and $20 million, each with a minimum 10% EBITDA threshold.
The transaction remains subject to customary closing conditions, including required corporate, regulatory, and stock exchange approvals, including approval from the Canadian Securities Exchange.
Upon completion of the acquisition, Redwood will pay a finder’s fee of $298,000 in the form of 100,000 Redwood common shares to an independent third party.
Redwood uses advanced AI to accelerate chemistry research and development, with applications in drug discovery, development, defense, and safety solutions. The company combines chemistry, AI, and manufacturing expertise to streamline drug synthesis and scale-up.
KEY QUOTES:
“Redwood’s focus has been on applying advanced AI and computational tools to complex real-world problems, many of which involve governments, healthcare organisations, critical infrastructure operators and other organizations where security, trust and data integrity are fundamental. As our platform expands into increasingly mission-critical environments, quantum resistant cybersecurity becomes a natural extension of our strategy. Quantum.IQ fits that direction by adding a cybersecurity platform focused on one of the next major infrastructure challenges facing governments and enterprises. We believe this acquisition will strengthen Redwood’s position in security-sensitive technology markets while expanding the range of problems our platform can help address.”
Louis Dron, CEO of Redwood AI
“Quantum computing presents one of the most significant cybersecurity transitions organizations will face over the coming decade. We believe Redwood is the right long-term home for Quantum.IQ because of its vision for applying advanced AI and computational technologies to complex, mission-critical challenges. By combining our post-quantum cryptography platform with Redwood’s broader AI capabilities, we believe we can accelerate commercialization while delivering greater value to governments, critical infrastructure operators and enterprise customers preparing for the quantum era.”
Kevin O’Neill, CEO of Quantum.IQ Technologies
