Now that POET is prototyping portions of the Optical Interposer and preparing to qualify the devices with major global customers, as announced in mid-November 2018, the Company is considering two important objectives in order to achieve its expected growth:

• Preparing for high-volume manufacturing to support the ramp of POET’s Optical Interposer; this will require investment in capital equipment and facilities to increase manufacturing capacity for the Optical Interposer and its related components;

Question: Are these capital investments expected to be made by the suppliers (or customers). For example SilTerra for the Optical Interposer and/or DenseLight for the active III-V devices with waveguides compatible with the Optical Interposer. In other words investments made by companies that will be part of the supply chain.

• Investing its own capital, energy and focus in design, development, marketing and sales of Optical Interposer-based solutions.

Question: Does this relate to both existing products and new products expected to be completed prior to the sale of DenseLight. Is it the goal of POET to continue using the DenseLight facility for R&D of new Optical Interposer applications or is this expected to be carried out at other facilities.

As per Suresh’s comment in the original NR regarding the Buyer:

a well-funded partner capable of making investments in both DenseLight and in additional manufacturing capacity will both support the anticipated ramp of Poet's Optical Interposer and transform DenseLight into a world-class manufacturer with global market reach. In addition to being one of its potentially largest customers, we expect to remain engaged with DenseLight and its partner over the long term for the benefit of both companies.

The company is now preparing to meet high-volume manufacturing requirements for Optical Interposer-based solutions, applying the active device designs successfully achieved at DenseLight, and exploring additional vertical markets beyond datacom.