I have been waiting for the post AGM comments to emerge on Agoracom before writing this update.

The meeting on 7 Jul 16 was not a large one (35 attendees). On this occasion there was very little hype beforehand, mainly because I believe that much of that had been geared towards the Town Hall Meeting of over a month ago. The AGM was uncontroversial with the only issue of concern, regarding 'options', did not materialise. The options packaged proposed was passed despite the many on line protests written on the Agoracom forum. Here management issuing options is disliked because of the negative effect on Share Price (SP) which occurs when options are cashed in, and the selling effect of shares that were needed to fund the various individuals' involved purchase of options.

I am grateful to the five or so members of the Agoracom POET Group who were present at the AGM for their forthright, insightful comments which have been most helpful and encouraging about the company. There is nothing like looking a CEO straight in the eye and judging the body language of management at first hand as they speak to get a gut impression of how truthful / effective they are. The verdict was most aptly put by one poster as ' these guys are more serious than a heart attack'. They are clearly remarkable and impressive individuals and I would summarise board opinions as: that our management are not only highly experienced in the creation of IC but they are also highly motivated to succeed. Our CEO in particular appears to be a very driven workaholic. They all are particularly excited about the depth that the recent acquisitions of DenseLight and BB will give the Company. These were moves that are apparently seen by the industry as a very smart coupe.

No one really understands why the Share Price is languishing but the Agoracom board is convinced it's the cashing in of options that has caused the major downward influence and that this selling is expected to end soon which should allow the SP to rise. The departure of Peter Copetti and Geoffrey Taylor as wells as options issued to the University of Connecticut maturingare at the heart of the current selling and buying stimulus. I cannot really comment on the ins and out of this i any depth but some argue its neutral, others that its damaging. Either way options appear to be a major part of an individuals reward package in this industry and attracting top quality staff and directors is a must for POET success to my mind.

I feel the negativity of some investors towards issuing options is stimulated by a form of jealousy that they are not being rewarded through the SP growth whilst management are when SP is above their option price but not above the average purchase price of that investor. This is serendipity to my mind but then I am in profit and I know many are not. The daily SP is a key indicator of ones emotional relationship with ones investment in POET but clearly the real value of your investment is a much more complex formula that would include its potential in its target markets, management capability, disruptive nature of the IP and many other 'soft' indefinable factors.

My gut tells me PTK is undervalued and an excellent growth opportunity for those who have cash to buy. For those whose average is way off this must be is a painful period, but one has to accept that the SP having reached a high of C$2.80 on a spike of technical enthusiasm at the Empire Club briefing, that the technology and team behind this share is significantly more advanced currently than then back then and should take comfort it the shares capacity to hit such highs. When the revenue potential of this share is made discernible through deals SP could advance quickly and up-listing would become feasible and an added incentive for instructional investors to buy PTK . Time is and targets are on our side and the prospect of a significant event to boost SP must be feasible within a time frame maximum of ten months or by the second half of 2017. For those who feel this is too long I am sorry.

Remembering that the company's first target for production is the Active Optical Cable (AOC), the Lab to Fab focus is firmly targeted at the fully integrated chip required for the AOC. Tto make this happen chips have been manufactured in numbers containing the component parts; detector, VCSEL, memory, with a period of tuning and optimisation of each of the individual components before full integration of components and the final optimising the manufacturing processes involved before production runs. This is now the work in progress and we must recognise that POET's quality and performance si dependent on these necessarily iterative processes. A testable prototype is expected by Q4 16. Bearing in mind that confidence in the POET offering can give rise to Non Recurring Engineering deals that provide revenue income that managements has stated as expected in the next 10 months. In the next few weeks we hope to hear how the VCSEL component of the AOC will perform, the detector having already been produced with superlative performance .

Yes all this is taking much longer than was envisaged by investors in the past effectively, delaying the much hoped for financial reward of being in this investment opportunity. But one feels the new management team seem to be keen to tell things as it they are and not overly raise expectations which is better than the more hyped approach Peter Coppetti. The Agoracom board is maturing in this respect and are far more accepting of this new approach with opinions being much more centred and realistic. Management say they are intent on producing shareholder value through the quality and disruptive nature of the POET offering. Their Mantra being a rather Dalek like phrase as used by the Chairman Adjit Monacha 'execute, execute, execute'.

Perhaps a most telling phrase used by management is that 'the Physics is finished and that the engineering challenges now faced is what we are good at'. This remember comes from people who have worked at the top of the second largest manufacturers of IC in the world, Global Foundries in the case of the Chairman and CEO and in Subash Deshmukh's (COO) case, Applied Materials. The team are significant engineering experts in IC manufacturing and at the top of their game.

Another management factor is the degree to which the Board of Directors, a very worthy bunch of technocrats to my mind, are actively involved in the business much more so than is normal apparently normal in IC businesses and perhaps why they are rewarded with options. Each member brings with him his own area of expertise which open vertical markets to PTI. (Poet Technology Inc) and of course the right contacts.

I remain therefore optimistic that my investment is in safe hands, and that the products containing the disruptive chips manufactured by the POET process will be entering the rapidly growing Data Communications Market at the right time. That the years 2017/18 will see revenue and profit growth. It will be interesting to see how the 'depth' provided by the two acquisitions will pan out but certainly the facilities and marketing chain and goodwill acquired in Denselight, perhaps is Geophysical positioning too, will bring rewards not currently understood to the business side of PTI.

I accept that PTI is no longer the quick money venture that I initially thought it would be when it was an IP sales enterprise, with POET Intellectual Property to be bought by the highest bidder, but in the longer term what it will become is far more novel and as a disruptive IC design and manufacturing company that will address many potential vertical markets for IC than Data Communications, such as sensors in cars, the Internet of things, phones, medical products and Military systems. Surely, we have in the last year gone from ideas and experiments in laboratories to the manufacturing process of real chips in fabrication facilities. Within the DenseLIght acquisition we have our own complete productions and testing facility now purchased at bargain prices. The current activity being iterative improvement of those processes through engineering to deliver the unique benefits envisaged from POET. The acquisitions too will be giving more scientific intellectual depth to future POET products.

This all augers will to my mind. The current SP simply does not reflect the technical value that has been built into this growing company by a vast amount of hard work over this past year achieved by an astute and able management team. One senses that SP growth is not too far down line as there are going to be announcements of significant technical achievement and of revenue through NRE agreements.

Finally, more ethereal and impalpable is the more secretive and unspoken side of POETs presence in the commercial world of IC. Hidden entities and ongoing dealings are undoubtedly highlighted by the unwillingness of management to discuss this, the terminology they use and the strategy used to deal with investors to avoid such relationships being allowed air time. This is the tight lipped world of Non Disclosure Agreements, where firms like Apple penalise companies and individuals for revealing business in confidence matters. But the fact remains of the presence of an Apple Executive is on the TRAB which is not denied. Yet asides and rumours abound, where lets face it ,fortunes are made on such insider information which float around at the peripheries of businesses, in the world of lawyers, previous staff members and the instinctively astute well informed observer in related businesses. Take this all with a pinch of salt of course but one cannot deny the excitement of such titletatle.

Hold.

Robert