Aiming to become the global leader in chip-scale photonic solutions by deploying Optical Interposer technology to enable the seamless integration of electronics and photonics for a broad range of vertical market applications

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Message: Re: POET is in the sweet spot
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May 09, 2019 07:17AM
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May 09, 2019 11:03AM

Key terms of the non-binding LOI include proposed cash consideration in the range of US$26 - $30 million (C$34.5 – C$40 million), including a US$4 million (C$5.3 million) earn-out provision, no-shop and confidentiality clauses, and an undertaking to enter into key operating agreements, including a preferred supply agreement and a long-term strategic cooperation agreement among the parties.  The parties expect to complete the signing of the definitive transaction agreements on or before September 15, 2019. The broad terms of the LOI and the consummation of any transaction are subject to further due diligence, the negotiation of definitive agreements and obtaining required approvals by all parties, including but not limited to the TSX Venture Exchange and a majority of the Company’s shareholders. 

I think the above statement says it all really. This isn't just a sale of DL facility and adios. Clearly the buyer is happy with what they see. As such they are entering this startegic cooperation and preferred supplier agreement. To my mind this validates the technology, if it all goes through as planned. We also know it's a major player in the industry, whcih adds further weight to the argument. Or maybe they just like to chuck their money about on a whim?!?!?

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May 09, 2019 11:35AM
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