I believe this mess is completely the result of how this financing was handled. I believe it was the result of Suresh believing that the investors he was pitching would accept his vision and his belief that POET will be the de facto solution for integrated photonics. And in fact these investors probably did see it through Suresh’s eyes. But the market set the price. I believe that the retail shareholders for the most part were responsible for the share price decline. But I believe that ultimately it was POET that facilitated this by their lack of understanding of how the market works. In retrospect I think they could have set the price at .60 at the time they announced the PO and none would have been happy. But I think they left it open because I think they felt they could do better.
Chris Chu’s comment:
I'm guessing that Rodman is going to put them in front of a bunch of aggressive hedge funds (they all know each other, the analysts at these funds). At any rate when they go to price, the price will probably not be great.
Who is steering the ship over there?
The question that needs to be addressed is why they needed quick money that would justify them not cancelling or demanding a higher price that we could live with.
As much as we have all felt PC was not the man for the job (and he was not) I don’t think this would have happened this way if he was still with POET. Don’t lose sight of the fact that roughly 1.4 million options that were in the money a short time ago were left on the table between PC and GT.
