to U of Conn in $ terms?
Keeping in mind that the U of Conn negotiating team was no doubt packed with Phds and had access to any number of other Phds in what ever discipline was needed, they would have mulled over, very carefully and theroughly, what kind of deal was in the best interest of their institution.
They decided to trade from 5% to 3% in exchange for 2mil shares in PTK. That constitutes a full 40% reduction in their future royalty take. In the event that the technology that underlies POET reaches its full potential, it will/could become the prime player in extending Moor's law. It boggles the mind to try and estimate the dollar value this represents. But for the sake of simplifying lets say 1Billion in royaly app. returns at 5% =50 mil to U of Conn. At 3% = 30 mil. That is a 20 million dollar difference. So 2mil shares would have to have a value of $10.00 per to make up for it.
The question is how many billions would POET generate in its many applications, from wearables to super computers. My guess is alot, a whole lot of billions. So we start multiplying a $10 dollar SP by a lot, a whole lot, and we get an idea of why the big brains at Uof Conn saw this exchange as a good deal.......also a nice deal for us shareholders if it all bears fruit.
