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Investing.com -- POET Technologies Inc (TSXV:PTK) (NASDAQ:POET) stock tumbled 9.2% Monday after the optical engine manufacturer announced plans for a $25 million public offering at a significant discount to its market price.
The Toronto-based company intends to issue 5 million units priced at $5.00 each, representing a 12% discount from Friday’s closing price on the TSX Venture Exchange. Each unit will consist of one common share and one warrant exercisable at C$8.16 for five years.
According to the announcement, a single Canadian institutional investor is expected to subscribe for the entire offering. POET plans to use the proceeds for working capital and general corporate purposes, with no commission or finder’s fee to be paid in connection with the transaction.
The offering still requires regulatory approvals, including from the TSX Venture Exchange, along with other customary closing conditions.
Thomas Mika, executive vice president and chief financial officer, noted that the company has raised over $100 million in equity capital at "increasingly higher prices" over the past year, achieving what he described as all of POET’s near-term financing goals.
POET Technologies specializes in designing optical engines and light sources for artificial intelligence networks and hyperscale data centers. The company’s products are built on its Optical Interposer platform, which integrates electronic and photonic devices into single chips using semiconductor manufacturing techniques.
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