I agree about the cash raise. We have circa $10m which will fund operations into the new year however at what point do you make the decision to bring in more money? perhaps 2 quarters before the $$$ runs out?
So the new money will come from any of four + + sources
1. NRE in the $1-$20m (assumption) We will need more than one of these and do these hinge on the outcome of our technical milestones?
2. Sales. Without a POET product at the moment we cannot imagine what sales will be however we have now been told that we will have multiple products by the end of the year.
3. An equity sale. A large company partners with POET and takes a % for a large sum of money to fund operations and growth.
4. A PP Private Placement. Failing the three sources above I do believe a PP is inevitable with the usual associated warrants.
I do like the direction we are going with guidance in Q4 and milestone update.
What I dont like is the lack of communication which has brought about the death by a thousand cuts ot the share price.
POET can make bold statements about cash flow positive in Q1 2017 for DenseLight and EBITA positive for POET in 2018 and not back it up. The market wants to see how we will get there and perhaps the market will extend a little latitude and our share price will move up. I do not like where the share price is now especially with so many options available for issue. Also if we are to raise cash at this price we are looking at significant dilution with shares and warrants.
Why can we not be informed about the packaging company for our AOC which is due end of 2016. There must be an agreement in place or an MOU. Announcements like this can bring more attention to POET and while it may not boost the share price it may stop the bleeding.
Also we had costs associated with outsourcing and establishing new relationships with Intelligent Epitaxy Technology http://intelliepi.com/products/ Why was this not communicated along the way?
The silence has to stop and if the company would only report these significant steps this may indeed stop the bleeding allowing future options to be awarded at a higher price. We may have in the background a huge deal or a big brother who will enter once the milestones are achieved but for now some share price support would be welcom.
IMHO.
