POET Technologies, a Toronto-based company with Lehigh Valley operations, plans to sell 1.6 million new shares at 90 cents each.
POET will use the approximate $1.4 million in proceeds for general purposes, the company said in a statement. Buyers will also receive a warrant to purchase another share for $1.12, good for five years, for each share bought.
The company, which has an office in South Whitehall Township, make an “optical interposer” and says it serves the data center, telecommunications and artificial-intelligence markets.
In November, shares in POET dropped below $1 but recovered to close at $1.14 on Friday.
The offering is due to end Monday, Dec. 4. The plan to sell shares was announced Nov. 1, and details were posted Nov. 30.
POET shares sold in the U.S. are trading at a fraction of their 52-week high of $6.23. The 52-week low is 72 cents, set Nov. 29, before the pricing of the new shares and warrants was disclosed.
The company put out a statement Nov. 22 on the decline in its share price. Chief Financial Thomas Mika said “market conditions are not favorable to small and micro-cap companies” but the statement said POET was having “positive discussions with several potential investors in the offering.”
The goal of the offering is to “provide the needed capital to continue the company’s operations through early 2025,” the Nov. 22 POET statement said.
“Except for speculation around this offering, we have experienced no changes in the company’s plans, commercial efforts or operations that would be a recent for the recent declines in the company’s share price,” Mika said.
On Nov. 14, POET reported a third-quarter 2023 loss of $5.1 million in U.S. dollars, or 13 cents per share, versus a loss of $4 million or 11 cents per share, in the year-ago quarter.
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