In January 2019, the Company was approached by China Prosper Group, an investment management and advisory
company, expressing a strong interest on behalf of its investor clients in purchasing the DenseLight fabrication facility
in Singapore. The Company took this offer seriously for several reasons, including the potential investors’ financial
strength, their interest in investing in both R&D and high-volume manufacturing capacity for InP-based devices, and
the Company’s desire to invest more of its limited resources in Optical Interposer-based solutions versus supporting
the continuous need for capital expenses typical of any semiconductor manufacturing operation. China Prosper Group
also expressed the intention of its group of investors, which eventually organized into the Consortium, to support
DenseLight’s losses until it achieved and exceeded cash break-even operations.