TLDR
- POET Technologies closed a $75 million private placement with a single institutional investor, the largest funding round in company history
- The company sold 13.6 million shares and warrants to raise the capital
- Stock jumped 23.5% on Tuesday, reaching its highest price since March 2022
- POET now has over $150 million in cash with no debt to fund growth plans
- Proceeds will fund corporate development, acquisitions, R&D expansion, light source business acceleration, and working capital
POET Technologies closed a $75 million private placement on Tuesday, sending shares up 23.5% to their highest level since March 2022. The optical chipmaker sold 13.6 million shares and warrants to a single institutional investor.
The investment represents the largest funding round in POET’s history. The company makes advanced chips that connect light and electronics for AI systems, data centers, and telecom networks.
CEO Suresh Venkatesan said the company now holds over $150 million in cash with no debt. That financial position gives POET the resources to scale its operations in the AI hardware market.
The company plans to use the proceeds for several growth initiatives. Corporate development and targeted acquisitions top the list.
POET also intends to scale up research and development efforts. The light source business will see accelerated investment as well.
Additional funds will go toward expanding operations and general working capital needs. The non-brokered financing came from a single institutional investor rather than through a traditional underwriting process.
Retail Trader Response
On Stocktwits, retail sentiment for POET climbed into the “extremely bullish” zone at 91 out of 100. Message volume jumped to “extremely high” from “high” the previous day.
The stock ranked as the third top-trending ticker on the platform. Some traders predicted the stock could breach the $10 mark or even reach $12.
One user expressed optimism about the funding news. Others focused on the company’s debt-free status and strong cash position.
Recent Performance
Last month, POET surged over 15% in a single day after announcing a $500,000 order for its Optical Interposer technology. Year-to-date, the stock has climbed 32.4%.
That performance beats both the S&P 500 and Nasdaq indices. The latest jump brought shares to levels not seen in over three years.
The company’s Optical Interposer technology enables faster data movement within AI systems. This positions POET in the growing market for AI hardware solutions.
The private placement included both common shares and warrants. Warrants give the investor the right to purchase additional shares at a set price in the future.
POET did not disclose the identity of the institutional investor. The financing closed after deducting related expenses from the gross proceeds.
The stock’s Tuesday close marked a turning point for investors who had waited years for a return to these price levels. Trading volume reflected strong interest in the news.
POET’s focus on AI connectivity solutions aligns with current market demand. Data centers require faster and more efficient ways to move information between components.
The company’s technology addresses this need by combining optical and electronic components on a single platform. This approach reduces latency and power consumption compared to traditional solutions.
The $75 million investment gives POET financial flexibility to pursue acquisitions. The company can now consider strategic purchases that would have been difficult with a smaller cash position.
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