20 March 2020
POET extends warrants from 2018 public offering; to receive Tranche 2b payment for DenseLight subsidiary by end-March
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 — says that, in connection with its public offering managed by Toronto-based Cormark Securities Inc (completed on 21 March 2018), it is extending the two-year exercise period by four months (to 23 July) for a total of 12,545,350 common share purchase warrants granted to investors, all of which are exercisable at C$0.75 per share. All other terms and conditions of the warrants remain unchanged. The warrant extension, approved by the board of directors, has been accepted by the firm’s Indenture Trustee and the TSX Venture Exchange.
POET also reported that the Tranche 2b payment of US$8.25m is on schedule to be paid to it (by the buyer of its Singapore-based subsidiary DenseLight Semiconductors Pte Ltd) on or before 31 March. The Overseas Direct Investment (ODI) application submitted by the buyer has been accepted by the Chinese authorities in Shanghai and approval of the transfer to POET is expected soon. The remaining Tranche 3 payment of US$5m is expected to be paid by the end of May.
In response to the potential risks associated with COVID-19, POET has taken certain preventive measures to ensure its business remains operational while also protecting employees, including working from home, social distancing among team members, sanitation of test equipment and workstations, and a split rotation schedule that reduces the impact to operations in the event that infection requires quarantining of staff.
“Although we elected not to participate in the recent Optical Networking and Communication Conference & Exhibition (OFC) in San Diego, we have been conducting multiple virtual meetings with potential customers, strategic partners and financial analysts that we had planned to see at OFC to review the benefits of the POET Optical Interposer across a number of potential applications,” says president & general manager Vivek Rajgarhia. “The response has been very positive, and our discussions have focused on products in which our platform can bring tremendous value to their offerings.”
Due to the uncertainty of travel, POET’s board has deferred setting a date and location for its next Annual General Meeting for about six weeks and is considering using the ‘TSX Trust Virtual Alternative’ platform.