5 June 2020
Final payment to POET for DenseLight subsidiary delayed
POET Technologies Inc of Toronto, Ontario, Canada — designer and developer of the POET Optical Interposer and photonic integrated circuits (PICs) for the data-center and telecom markets — has received notice confirming a delay of the final US$5m Tranche 3 payment in connection with the sale of the remaining 19% stake of its Singapore-based subsidiary DenseLight Semiconductors Pte Ltd, which was due on 31 May.
The buyer cited the wide-ranging impacts that the COVID-19 Coronavirus pandemic has had on businesses globally and the lengthy administrative process associated with transfers of funds outside of China.
POET previously received a first-tranche payment of US$8m (for 30% of the shares of DenseLight) in early November, followed by the Tranche 2a payment of US$4.75m (for 19% of the shares) in early February and the Tranche 2b payment of US$8.25m (for 32% of the shares) at the end of March, despite a delay due to business interruptions in China resulting from the the COVID-19 outbreak.
POET says that it is continuing to work closely with the buyer to address the current challenges associated with the transfer of the final payment, and it remains confident that the remaining balance and timing will be resolved in a mutually beneficial manner.