There is going to be a lesson learned Jack but it will be by those who have been selling this stock with hopes of getting cheap shares through a public offering. It is not going to happen.

There is today a shortage of InP foundry capacity. POETs InP foundry has significant value and it  has provided this company with a great opportunity to develop the Optical Interposer with very quick turnaround in wafer fabrication of weeks as opposed to months for wafer runs. Since they have been primarily using this factory for R&D it has provided an accumulation of loss to carry forward. Running a factory is expensive if it is a platform for manufacturing. Any down time due to failures such as a scrubber means down time to manufacturing. It is expensive to run a fab. 

The DenseLight Fab has served its purpose and now POET has developed the Optical Interposer platform which really means they have all the parts that are required to design whatever optical engine is needed by the networking companies. At some point they will benefit from the same model that other very successful communication companies in similar space have used. That is to own their own assembly and test facility which is a much, much lower cost facility to run than a fab. And that facility can go anywhere. For example assemble and test in the US and put a “built in the US” stamp on it for product shipment. But I digress.

It is interesting to consider what the POET Optical Interposer platform represents. A disaggregation of devices something that industry is embracing over the difficulties of creating monolithic solutions. Building the best active and best passive devices requires the best material sets and fabrication processes to maximise the efficiency of each operation. If all of these “best” devices can become interconnected efficiently you end up with the best overall package that has not had performance degraded by compromising the material set or process.  

So as was pointed out in the FAQ sheet:

Importantly, now that the Company has announced this event, it believes it is in a much better position to strengthen its balance sheet with additional capital, with a priority being given to securing debt and other forms of non-dilutive financing.

It really is a win-win-win and POET will not need to raise money publicly.

The added benefits of announcing a debt financing sooner rather than later will be to move the price as it will signal to  the market that there will  not be any more cheap share available from a new raise and the warrant money will hopefully begin to  flow as wellJ