Shares of POET Technologies Inc. (NASDAQ:POET) slid 9.2% on Monday following news of a $25 million public offering priced well below the company’s previous closing value.
The Toronto-based photonics firm announced plans to issue 5 million units at a price of $5.00 each, representing a 12% discount to Friday’s closing price on the TSX Venture Exchange. Each unit will include one common share and one warrant, which gives the holder the right to purchase an additional share at C$8.16 over the next five years.
The offering is expected to be fully taken up by a single Canadian institutional investor, according to the company. No commissions or finder’s fees will be paid, and proceeds will be used for working capital and general corporate needs.
The transaction remains subject to regulatory approval, including that of the TSX Venture Exchange, and other typical closing conditions.
Thomas Mika, the company’s Executive Vice President and CFO, said the new funding rounds out POET’s near-term capital needs, highlighting that the firm has successfully raised over $100 million in equity at increasingly favorable valuations over the past year.
POET Technologies develops cutting-edge optical engines and light sources designed for AI infrastructures and hyperscale data centers. Its core innovation, the Optical Interposer platform, integrates electronic and photonic components into compact, semiconductor-based systems for high-speed data transmission.