Leb: Makes me wonder why they bothered with a four month extension if after three months we are no further along in terms of shareprice, shareholders knowledge of the status of the technology, and closure of the DL deal.

First off closure of the DL deal. The company reported that status in the recent news release as issues associated with getting the remaining $5 million transferred out of China. Not hard for me to accept and there has been no indication that DL is not happy with the purchase or that POET is not happy with the DL deal. On the contrary my understanding is that POET believes they got the best possible deal.

Clearly there is confidence that the company will be able to announce a significant material event that will generate heavy buying from new investors. This can happen very quickly on a significant announcement with the potential for volume to increase into millions of shares a day.

The company of course wants those warrants exercised as they benefit from both the cash on hand, and the increased option pool as well as keeping their investors happy. Options are of course a necessary thing to attract and hold key people as the company grows.

The share price is currently under pressure from large sell orders. Are those orders designed to hold the share price down? I don’t know why that would be the case but it is possible. I think  the source of  that sell pressure is associated with one or more debenture holders converting debentures into  shares at .40 and taking  profit  as a capital  gain at  a  lower tax  rate as opposed to  interest income. And of course this makes the attached warrants at .50 available for the next 2 years. This is totally speculation on my part but it might make sense to a holder who needs the cash now and is overweight in this investment (not something I would do as I would do unless  I had to). And of course the company once again gets the option pool expanded as a result.

Company insiders committed a large amount of their money in the debenture and there has been no insider selling.

Insiders of the Company subscribed for 14.3% or $535,000 of the Convertible Debentures, including the Company’s board of directors and senior management team. Insiders of IBK Capital subscribed for 4% or $146,000 of the Convertible Debentures.

Bottom line for me is that the company is working with major companies and we heard that from DL as well. With major companies  involved  we  have the potential for  major announcements and  let’s not forget that once  the cat  is out  of the bag POET will become a takeover target unless they can satisfy everyone’s needs and  do it in a hurry because  photonic integration at  the  lowest  possible cost is the way of  the future and that future is now.

Looking forward to Tom “hitting it out of the park” on Tues @ 8:30 AM EDT

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