The Securities and Exchange Commission, based in Washington, told Arqit Quantum that its action was ‘a fact-finding inquiry,’ the U.K. company said. British cybersecurity company Arqit Quantum Inc. is facing an investigation from the U.S. Securities and Exchange Commission over its merger with a special-purpose acquisition company last year, the company disclosed Wednesday. Arqit saw its market value rise from $1.4 billion to over $4.5 billion soon after it completed the SPAC merger—a form of public listing—in September 2021 as investors embraced the company and its projections of surging revenue and profits in the emerging sectors of digital security and advanced cryptography. Its shares have since fallen significantly amid a broad investor retreat from SPACs and young high-growth companies.

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