POET Technologies secures $75 million in private placement

TORONTO - POET Technologies Inc. (NASDAQ:POET), currently valued at $579 million and showing a remarkable 92% price return over the past six months, has closed a $75 million non-brokered private placement with a single institutional investor, the company announced Tuesday. According to InvestingPro analysis, the company maintains a strong liquidity position with more cash than debt on its balance sheet.

The transaction, described as the largest single investment in the company’s history, involved the issuance of 13,636,364 common shares and one common share purchase warrant. The warrant entitles the holder to purchase up to 13,636,364 additional common shares at C$9.78 per share until October 7, 2030.

The combined price for one common share and the warrant was $5.50. No commission or finder’s fee was paid in connection with the private placement.

POET Technologies, which designs optical interposer technology and photonic integrated circuits for data centers and telecommunications, plans to use the proceeds for corporate development including targeted acquisitions, expanding research and development, accelerating its light source business, and general working capital.

"With a war chest of over $150 million in cash and no significant debt, we are now able to scale up our own growth ambitions in the market for advanced AI hardware solutions," said Dr. Suresh Venkatesan, Executive Chairman and CEO of POET Technologies, in the press release statement. InvestingPro data confirms this strong financial position, with a current ratio of 1.89 indicating healthy short-term liquidity. Analysts project 33% revenue growth for the current year, though the company’s current trading price exceeds InvestingPro’s Fair Value estimate.

The company focuses on developing high-speed optical engines and light source products for artificial intelligence systems and hyperscale data centers. POET’s technology integrates electronic and photonic devices into a single chip using wafer-level semiconductor manufacturing techniques. With its recent stock momentum and significant growth potential, investors can access 12 additional exclusive insights and detailed financial metrics through InvestingPro’s comprehensive analysis platform.

All securities issued in the investment were issued pursuant to OSC Rule 72-503 "Distributions Outside Canada," according to the company’s announcement.

In other recent news, POET Technologies Inc. has announced its intention to complete a non-brokered public offering to raise $25 million in gross proceeds. This offering involves 5 million units priced at $5.00 per unit, with each unit comprising one common share and one share purchase warrant. Additionally, the company plans to delist its common shares from the TSX Venture Exchange, effective August 27, 2025, while maintaining its Nasdaq listing. In a strategic move, POET Technologies has partnered with Sivers Semiconductors to develop External Light Source modules aimed at AI infrastructure applications. The collaboration will leverage Sivers’ laser technology and POET’s Optical Interposer platform to meet the demands of AI clusters and data centers. Furthermore, POET Technologies will showcase its optical innovations at the 2025 China International Optoelectronic Expo, highlighting products like the POET Blazar and POET Teralight. The company also appointed Sohail Khan to its board of directors, bringing his extensive industry experience to the governance team. These developments reflect POET Technologies’ ongoing efforts to strengthen its market position and expand its technological offerings.

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