POET Technologies Inc. (NASDAQ: POET) saw a significant stock rise of 19.06% to conclude the Tuesday session at $5.06. This positive US stock market response followed an announcement of a registered direct offering aimed at raising substantial capital for strategic initiatives.
Equity Offering Details
POET Technologies declared plans to issue warrants for 5,555,556 common shares as well as 2,777,778 shares. The transaction, which is anticipated to generate $25 million in gross revenues at a price of $4.50 per unit, includes one common share and a half-share warrant.
Expansion into Malaysia and Strategic Moves in China
Significant progress in increasing its production capacity was also disclosed by POET Technologies, signing a legally binding Memorandum of Understanding (MOU). It was inked with Quanzhou Sanan Optical Communication Technology Co., Ltd. (SAIC) for the acquisition of SAIC’s 24.8% stake in the joint venture Super Photonics Xiamen (SPX). POET now has total control of SPX and the associated manufacturing equipment, in line with its “China Plus One” strategy.
In order to expand its worldwide production network, the business is moving wafer-scale assembly activities outside of China. Contract manufacturers in Malaysia are being negotiated with; agreements should be finished by the end of the month, and operations should start by the end of the year.
Boosting Capacity to Meet AI Network Demands
POET’s expansion plan includes integrating wafer-scale assembly equipment to bolster production capacity for its 800G optical engines. This move positions the company to meet the growing demands of AI-driven networks through 2026. With an annual assembly and testing capacity exceeding one million optical engines, POET is well-poised to support its customers’ requirements for high-speed transceivers.
The transformation of SPX into a wholly owned subsidiary under the POET banner underscores the company’s commitment to growth and innovation, paving the way for broader market opportunities. Definitive agreements for the SPX acquisition are expected by late November.
