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TORONTO - POET Technologies Inc. (TSXV: PTK; NASDAQ: POET), a company specializing in optical engines and light sources for artificial intelligence networks, announced today its plan to raise $25 million through a non-brokered public offering. According to InvestingPro data, the company maintains a healthy balance sheet with more cash than debt, though it currently trades at a premium to its Fair Value. The offering consists of 5 million units priced at $5.00 each, comprising one common share and one warrant, with the warrant exercisable at C$8.32 over a five-year period.
The issue price signifies a 21.8% premium over the closing price on the TSX Venture Exchange as of the previous Friday. The proceeds are intended for working capital and general corporate purposes. The offering comes as POET’s stock has shown strong momentum, delivering a 64.4% return over the past year despite current market challenges. The offering, expected to close around May 15, 2025, will be made via a prospectus supplement to the Corporation’s short form base shelf prospectus and its U.S. registration statement under the U.S.-Canada Multijurisdictional Disclosure System.
This move follows the completion of POET’s acquisition of a 24.8% interest in Super Photonics Integrated Circuit Xiamen Co., Ltd. and progress in establishing manufacturing capabilities in Malaysia. The offering is projected to be fully subscribed by a single Canadian institutional investor, classified as an "accredited investor."
The consummation of the offering is subject to regulatory approvals, including the TSX Venture Exchange, and customary closing conditions. No commission or finder’s fee will be paid in connection with this offering.
POET Technologies, headquartered in Toronto, with operations in Singapore, Penang, Malaysia, and Shenzhen, China, focuses on high-speed optical engines and modules for AI clusters and hyperscale data centers, leveraging its POET Optical Interposer platform for device integration. InvestingPro analysts project significant sales growth of 92.8% for the current year, though the company is not expected to turn profitable. Get access to 8 more exclusive ProTips and detailed financial metrics with InvestingPro.
The information in this article is based on a press release statement from POET Technologies Inc.
In other recent news, POET Technologies reported fourth-quarter 2024 results that did not meet analyst expectations. The company posted a revenue of $30,000, which fell short of the anticipated $33,330. Adjusted earnings per share were reported at -$0.48, significantly below the expected -$0.07. Compared to the same quarter last year, POET’s revenue declined by 73%, attributed to a lack of billable non-recurring engineering services. The net loss for the quarter widened to $30.2 million, or -$0.48 per share, from $5.5 million, or -$0.13 per share, in the previous year. Despite the financial setbacks, POET raised $25 million through a private placement, contributing to a total of $82.2 million in equity capital raised in 2024. The company also completed the acquisition of Super Photonics Xiamen Co., Ltd for $6.5 million, payable over five years. Looking forward, POET anticipates significant revenue growth in the second half of 2025, supported by existing contracts and partnerships.
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