Ahasja: Could it be, that the raising of new capital is done to bring the production of epitaxial wafers under the roof of POET in Singapor? Maybe they plan a buyout of an epitaxial wafer producer in Singapor?
I think your question has some merits. What puzzles me most is why POET is doing the public offering at this time. The share price is at a multi-year low, and any equity raise would unavoidably lead to a high degree of dilution.
Why does the company not wait until after the November update? That would give potential investors more insight than is available now, including a technical status update on the detector and integrated VCSEL transceiver product developments. Doing the financing now gives raise to the following considerations:
- The November status will be (regarded by the market as) negative, so better do the financing now, before the share price is even lower.
- For whatever reason the money is needed extremely urgently – perhaps for another acquisition –, so the company cannot wait any longer.
- The company does not care much about dilution and its shareholders, as long as the financing is successful.
Let's have a look in the news release: "The Company intends to use the net proceeds from the offering for general corporate purposes, which may include, among other things, increasing working capital, further product and sales development, as well as potential business or intellectual property acquisitions in support of strategic growth."
I wouldn't rule out another acquisition at all, but who knows?
