POET Technologies Inc (TSX-V:PTK, NASDAQ:POET, FRA:RI4A) stock fell about 12% on Friday following the announcement of a $400 million registered direct offering and weaker-than-expected first quarter earnings.
The company, which designs and develops Photonic Integrated Circuits (PICs), light sources and optical modules for the AI and data center market, said on Friday that it has entered into a definitive agreement to issue and sell about 19 million common shares and warrants exercisable for an additional approximately 19 million shares to a single institutional investor in a non-brokered registered direct offering
The combined price of US$21 per unit is expected to raise approximately US$400 million in gross proceeds, with warrants exercisable at US$26.15 over a three-year term. POET said it intends to use the proceeds to expand manufacturing infrastructure, support corporate development and acquisitions, scale R&D, accelerate its light source business, and fund general working capital. The deal is expected to close around May 18.
Investor sentiment was also negatively impacted by the company’s Q1 2026 results, reported on Thursday, where POET posted an adjusted loss of $0.08 per share, wider than analyst expectations by $0.03. Revenue of $0.5 million rose 194.1% year-over-year and exceeded expectations of about $0.25 million. “During the first quarter of 2026, we made significant progress in expanding POET’s strategic position within the AI and hyperscale data center ecosystem,” POET CEO Dr. Suresh Venkatesan said in the earnings statement. “Our partnerships with industry leaders such as LITEON, Lessengers and Lumilens validate the growing demand for POET’s Optical Interposer platform and our ability to enable next-generation photonic integration solutions.”