TORONTO - POET Technologies (OTC:POETF) Inc. (TSX Venture: PTK; NASDAQ: POET), a $346 million market cap company specializing in optical interposer and photonic integrated circuits, has entered into a manufacturing agreement with Globetronics Manufacturing Sdn. Bhd (GMSB) to produce optical engines in Penang, Malaysia. The company's stock has shown remarkable momentum, delivering a 447% return year-to-date. InvestingPro data indicates the stock is currently trading near its Fair Value. The partnership is part of POET's strategy to expand its manufacturing capabilities and includes a Master Agreement, an Optical Engine Purchase Agreement, and a Deed of Consignment.
Under the agreements, GMSB will assemble and test Optical Engines based on POET's exclusive designs. The consignment deed concerns wafer-level process equipment recently acquired by POET, which will be installed at GMSB's facility. The Master Agreement, spanning three years, outlines the overarching terms of the collaboration. POET will cover the initial project plan and installation costs for the consigned equipment, while future purchase orders will be priced according to the specific optical engine types.
Additionally, Globetronics Technology Berhad (GTB) has committed approximately $1.7 million for capital expenditures over three years to support the manufacture of optical engines for POET.
In other developments, POET is finalizing the purchase of a minority equity interest in Super Photonics Xiamen (SPX) from Quanzhou Sanan Optical Communication Technology Co., Ltd. (SAIC). Definitive agreements are expected by December 31, 2024, following a binding Memorandum of Understanding announced on November 25, 2024. The terms of the transaction are still being negotiated.
POET has also confirmed that its public offering, announced on December 12, 2024, has been fully subscribed by an institutional investor, raising $25 million. With a current ratio of 2.2 and minimal debt-to-equity ratio, the company maintains a stable liquidity position. The offering's closure is anticipated post-acquisition of SPX, subject to regulatory approvals and standard closing conditions. InvestingPro subscribers can access detailed financial analysis and additional metrics.
POET Technologies is known for its high-speed optical modules and engines, catering to artificial intelligence systems and hyperscale data centers. While the company reported $0.12 million in revenue over the last twelve months with an EBITDA of -$22.26 million, its products, based on the POET Optical Interposer, aim to offer cost-effective, low-power, and scalable solutions for data communication within AI servers and other advanced applications. InvestingPro analysis reveals additional insights about the company's growth potential and financial health metrics.
This news is based on a press release statement from POET Technologies Inc. and does not constitute an offer to sell securities.
In other recent news, POET Technologies Inc. has unveiled plans for a registered direct offering, aiming to raise $25 million. The offering will issue over 5.5 million common shares and warrants for an additional 2.7 million common shares. Each common share and half warrant is priced at $4.50, with the full warrant's exercise price set at $6.00, valid for five years from issuance. The net proceeds are anticipated to be used for working capital and other corporate purposes, which include expanding assembly operations into Malaysia. The offering, scheduled to close in December 2024, is expected to be made to a single institutional investor that qualifies as an "accredited investor" under Canadian regulations. Completion of the offering is subject to necessary regulatory approvals and customary closing conditions. This is a recent development in the company's financial strategies.
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