On May 18, POET Technologies fell 8.41% in regular trading, trading at $13.065 USD/share, with trading volume of approximately $178 million. The stock extended its steep pullback from last week's highs.
The decline is driven by the completion of a $400 million registered direct offering disclosed on May 18, in which the company issued approximately 19 million common shares and an equal number of warrants at $21 per offered security to a single institutional investor. The warrants are exercisable at $26.25 per share over three years, with proceeds earmarked for manufacturing expansion, R&D, and potential acquisitions. The significant share dilution weighed heavily on the stock price.
Additionally, the company reported Q1 EPS of -$0.08, missing the analyst consensus estimate of -$0.05 by 60%. Revenue of $503,389 beat the $300,000 estimate but represented a swing from net income of $0.08 per share a year earlier. The selling follows a 43% single-day surge driven by a $50 million Lumilens order earlier in the week, with investors locking in profits amid concerns over dilution and a short-seller report questioning the company's partnerships.
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