POET Technologies Announces US$10 Million Registered Direct Offering

Rhea-AI Summary

POET Technologies Inc. (NASDAQ: POET) has completed a US$10 million registered direct offering with a single institutional investor. The offering included 3,333,334 common shares and warrants to acquire an equal number of shares at US$3.00 per unit. Each warrant is exercisable at US$4.00 per share for five years. POET is experiencing strong demand for its optical engine technology used in 800G and 1.6T speed optical modules for AI processing clusters. The company plans to use the proceeds for working capital and general corporate purposes. No commission or finder's fee was paid, and no underwriter was engaged. The offering was made under an effective shelf registration statement and is subject to TSX Venture Exchange final acceptance.

Positive

• Raised US$10 million in capital through a registered direct offering
• Strong demand reported for POET's optical engine technology in AI processing clusters
• No commission or finder's fee paid, potentially saving on offering costs

Negative

• Potential dilution for existing shareholders due to issuance of new shares and warrants
• Warrants could lead to further dilution if exercised in the future

Financial Analyst

The completion of this US$10 million registered direct offering is significant for several reasons. First, it provides immediate liquidity to POET Technologies, enhancing its working capital and general corporate purposes. This is critical for the company's ability to sustain operations and potentially invest in new projects without the immediate need to generate equivalent revenue.

From a financial standpoint, this capital injection can be viewed as a positive signal by investors, indicating a vote of confidence from the institutional investor involved. The terms of the offering, including the price of US$3.00 per share and the exercise price of US$4.00, suggest the market's valuation of the company's future prospects, particularly in the high-growth sectors of AI processing and high-speed computing.

However, it is important for investors to consider potential dilution. The issuance of new shares and warrants will increase the total number of shares outstanding, which can dilute the value of existing shares if the company does not generate corresponding growth in earnings. The long-term impact will depend on how effectively POET Technologies can leverage this capital to enhance its market position and profitability.

Tech Expert

POET Technologies' focus on optical engine technology for 800G and 1.6T speed optical modules places it at the cutting edge of data communication technology. This technology is indispensable for the scalability of AI processing clusters and other high-speed computing applications, which are increasingly vital in various tech industries.

The company's proprietary Photonic Integrated Circuits (PICs) and optical interposers present a significant technological advantage, as they enable faster and more efficient data transfer by integrating photonics directly onto semiconductor chips. For investors, this technological edge not only supports the immediate relevance of the funding but also suggests a promising future as these technologies are adopted more widely in data centers and telecommunications.

Nevertheless, the competitive landscape is intense and continuous innovation is key. How POET Technologies manages to maintain and advance its competitive advantage with the new capital will be critical. Success in this domain can translate into significant returns for shareholders, provided the technology gains broad market acceptance.

Market Research Analyst

The fact that an institutional investor participated in this offering without the intermediation of an underwriter or sales agent is noteworthy. It implies a strong direct interest and confidence in POET Technologies' business model and market potential. This also means the company saved on potential fees and commissions, maximizing the net proceeds from this capital raise.

In the broader market context, the demand for high-speed, high-capacity data transmission solutions is expected to grow exponentially with the proliferation of AI, data centers and 5G technologies. POET Technologies' products are well-aligned with this trend, placing it in a favorable position to capitalize on these market dynamics. For retail investors, this alignment with long-term industry growth trends can be an encouraging sign, suggesting potential for sustained demand and revenue growth.

However, investors should remain cautious about market volatility and the execution risks associated with deploying these new funds effectively. The coming quarters will be critical for observing how these funds translate into tangible business growth and market share gains.

TORONTO, July 19, 2024 (GLOBE NEWSWIRE) -- POET Technologies Inc. ("POET" or the "Corporation") (TSXV: PTK; NASDAQ: POET), the designer and developer of the POET Optical Interposer™, Photonic Integrated Circuits (PICs) and light sources for the data center, tele-communication and artificial intelligence markets, is pleased to announce that it has completed a registered direct offering with a single institutional investor pursuant to which the Corporation issued 3,333,334 common shares (the "Common Shares") and warrants exercisable to acquire 3,333,334 Common Shares (the "Warrants") for aggregate gross proceeds of US$10,000,002 (the “Offering”). The combined price of one Common Share and accompanying Warrant in respect of one Common Share was US$3.00 (or approximately C$4.09). Each Warrant is exercisable to acquire one Common Share at an exercise price of US$4.00 (or approximately C$5.45) per Common Share for a period of five years from the date of issuance.

POET is currently experiencing strong demand for its proprietary optical engine technology that powers 800G and 1.6T speed optical modules for AI processing clusters and light sources for advanced chip-to-chip light-based data communications and high-speed computing. The Corporation intends to use the net proceeds of the Offering for working capital and general corporate purposes. No commission or finder's fee was paid by the Corporation and no underwriter or sales agent was engaged by the Corporation in connection with the Offering.

This Offering is being made pursuant to an effective shelf registration statement on Form F-3 (File No. 333-273853) previously filed with the U.S. Securities and Exchange Commission (the “SEC”) on August 9, 2023, and declared effective on August 18, 2023. A prospectus supplement and accompanying prospectus describing the terms of the proposed offering was filed with the SEC on July 19, 2024, and is available on the SEC’s website located at www.sec.gov. All Common Shares and Warrants issued under the Offering were distributed to a purchaser located outside of Canada in reliance on OSC Rule 72-503 – Distributions Outside of Canada and, accordingly, all Common Shares and Warrants issued under the Offering are not subject to a Canadian statutory hold period in accordance with applicable Canadian securities laws. The Offering remains subject to the final acceptance of the TSX Venture Exchange (the "Exchange").

This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About POET Technologies Inc.

POET is a design and development company offering high-speed optical engines, light source products and custom optical modules to the artificial intelligence systems market and to hyperscale data centers.  POET’s photonic integration solutions are based on the POET Optical Interposer™, a novel, patented platform that allows the seamless integration of electronic and photonic devices into a single chip using advanced wafer-level semiconductor manufacturing techniques. POET's Optical Interposer-based products are lower cost, consume less power than comparable products, are smaller in size and are readily scalable to high production volumes. In addition to providing high-speed (800G, 1.6T and above) optical engines and optical modules for AI clusters and hyperscale data centers, POET has designed and produced novel light source products for chip-to-chip data communication within and between AI servers, the next frontier for solving bandwidth and latency problems in AI systems.  POET’s Optical Interposer platform also solves device integration challenges across a broad range of communication, computing and sensing applications.  POET is headquartered in Toronto, Canada, with operations in Allentown, PA, Shenzhen, China, and Singapore.  More information about POET is available on our website at www.poet-technologies.com.

Media Relations Contact: Adrian Brijbassi adrian.brijbassi@poet-technologies.com	Company Contact: Thomas R. Mika, EVP & CFO tm@poet-technologies.com

Cautionary Note Regarding Forward-Looking Information

This news release contains "forward-looking information" (within the meaning of applicable Canadian securities laws) and "forward-looking statements" (within the meaning of the U.S. Private Securities Litigation Reform Act of 1995). Such statements or information are identified with words such as "anticipate", "believe", "expect", "plan", "intend", "potential", "estimate", "propose", "project", "outlook", "foresee" or similar words suggesting future outcomes or statements regarding any potential outcome. Such statements include, without limitation, the Corporation's expectations with respect to its products, the scalability of the POET Optical Interposer and the success of the Corporation's products, the Corporation's use of proceeds for the Offering and the Corporation's ability to obtain the final approval of the Exchange. Such forward-looking information or statements are based on a number of risks, uncertainties and assumptions which may cause actual results or other expectations to differ materially from those anticipated and which may prove to be incorrect. Assumptions have been made regarding, among other things, management's expectations regarding the size of the market for its products, the capability of its joint venture to produce products on time and at the expected costs, the performance and availability of certain components, and the success of its customers in achieving market penetration for their products. Actual results could differ materially due to a number of factors, including, without limitation, the attractiveness of the Corporation's product offerings, performance of its technology, the performance of key components, and ability of its customers to sell their products into the market. For further information concerning these and other risks and uncertainties, refer to the Corporation's filings on SEDAR+ at www.sedarplus.ca and on the website of the U.S. Securities and Exchange Commission at www.sec.gov. Although the Corporation believes that the expectations reflected in the forward-looking information or statements are reasonable, prospective investors in the Corporation's securities should not place undue reliance on forward-looking statements because the Corporation can provide no assurance that such expectations will prove to be correct. Forward-looking information and statements contained in this news release are as of the date of this news release and the Corporation assumes no obligation to update or revise this forward-looking information and statements except as required by applicable securities laws.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

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FAQ

What was the size of POET Technologies' recent registered direct offering?

POET Technologies completed a US$10 million registered direct offering with a single institutional investor.

How many shares and warrants were issued in POET's July 2024 offering?

POET issued 3,333,334 common shares and warrants to acquire an additional 3,333,334 common shares.

What is the exercise price and duration of the warrants issued by POET (NASDAQ: POET)?

The warrants have an exercise price of US$4.00 per share and are exercisable for a period of five years from the date of issuance.

How does POET Technologies plan to use the proceeds from its July 2024 offering?

POET intends to use the net proceeds for working capital and general corporate purposes.