Quantum Cloud & AI Closes $28 Million from PNO Capital to Launch Data Center Operations in Pakistan

Quantum Cloud & AI Technologies Ltd (CLOUD) has secured a substantial investment of Rs7.784 billion from PNO Capital Limited to launch data center and cloud operations in Pakistan. This strategic move, announced in a notice to the Pakistan Stock Exchange (PSX) on Monday, marks a significant milestone for the company, which is currently listed as a defaulter.

The investment agreement follows a series of approvals, including a board decision on July 12, 2024, and subsequent shareholder endorsement at an extraordinary general meeting (EOGM) on August 2, 2024. PNO Capital Limited, a private equity fund specializing in technology and healthcare, will inject Rs500 million as equity, with Rs400 million coming from the company’s sponsors. The remaining Rs7.3 billion will be raised through convertible bonds, which carry a three-year maturity period and an annual coupon rate of 10%, adjustable at the end of the term.

This investment is expected to propel CLOUD into the growing tech sector, leveraging the expertise and capital from PNO Capital to establish a solid foundation in data center and cloud services in Pakistan.

Originally a Pakistan-based textile company, Chakwal Spinning Mills faced severe financial challenges after halting operations in 2017. In July 2024, the company rebranded itself as Quantum Cloud & AI Technologies Ltd, signaling a bold shift in focus. This rebranding spurred a remarkable stock surge, from Rs2.06 in November 2023 to Rs156.33 by August 2024, capturing market attention.

Source: The News International