Shares of POET Technologies Inc. (NASDAQ: POET) experienced an 8.1% decline during after-hours trading on Thursday following the company's declaration of a substantial $150 million registered direct offering. This transaction, which involves the sale of 20,689,656 common shares, is anticipated to dilute current shareholders significantly.
The optical engine designer specializing in artificial intelligence infrastructure has entered into agreements with institutional investors to facilitate this share issuance. Subject to customary closing conditions, POET expects the offering to finalize around January 23, 2026. Titan Partners, a unit of American Capital Partners, serves as the sole placement agent managing the deal.
Proceeds from the offering are earmarked for a variety of corporate development activities. These include pursuing selected acquisitions, expanding research and development efforts, accelerating the commercialization of its high-speed optical modules and light source product lines, broadening operational capacities, and general working capital needs.
Dr. Suresh Venkatesan, POET's Executive Chairman and Chief Executive Officer, highlighted the company's Optical Interposer™ platform along with distinct high-speed optical engines and light source products as differentiators in AI infrastructure. These solutions operate across multiple layers, from chip-to-chip communication and intra-datacenter data transfer to mobile networks that distribute data to end-users.
Additionally, POET foresees the capital raise expanding its institutional investor profile by bringing in a cohort of new fundamental investors, potentially strengthening its shareholder base with investors committed to its technological vision.