POET Technologies entered a definitive agreement with a single institutional investor to raise $400 million in gross proceeds. The transaction involves 19,047,620 common shares and accompanying warrants. The combined price of $21.00 per unit represents a premium over the previous day's closing price.
The company will use the funds to expand manufacturing infrastructure and support potential acquisitions. Capital is also earmarked to scale research and development and provide general working capital.
This financing follows a stock surge after a May 14 supply agreement with Lumilens. Shares declined significantly in premarket trading following the news. The market reaction reflects concerns over shareholder dilution despite the premium pricing.