POET Technologies tumbles after announcing $150 million share offering to two new fundamental investment managers

POET Technologies is tumbling after announcing that it’s selling 20.7 million shares to raise approximately $150 million in an oversubscribed registered direct offering “by two new fundamental investors.”

Its prior $75 million raise through the sale of stock and warrants earlier this month is widely presumed to have been to MMCAP International, which was already its largest shareholder.

“We’ve been very pleased with the level of interest in POET by investors of all types — retail, institutional,” POET Executive Chairman and CEO Dr. Suresh Venkatesan recently told Sherwood News, saying that the company’s focus this year is to make sure that “the technology that we’re developing is truly manufacturable at scale and at wafer scale.”

The optical communications company has enjoyed elevated interest from retail investors recently as the AI boom raises the demand for data to be transferred as quickly and efficiently as possible. Last week, POET announced a $5 million order for its optical engines from a “leading systems integrator.”

Per the press release, POET “intends to use the net proceeds from this investment for corporate development, including targeted acquisitions, scaling up of R&D, acceleration of the light source business, expanding operations, and general working capital.”