We've seen that POET has been focused on improving the areas identified in the P2 NR:
- the general computer marketplace;
- the ability to close a deal successfully;
- the ability to execute strategy in the various originally and currently anticipated markets for the POET Technology;
- the ability to successfully conclude a renegotiation of the amount of the UConn royalty on more favorable terms which is currently in progress; and
- the ability to develop a fully functioning product in the shortest amount of time.
Their choice to engage UConn to improve the roylaty terms was clearly aimed at raising the valuation by adding certainty to #4 on the list. Either that, and/or it was in anticipation of our first licensing deal. Signing a deal would add certainty to #2 and #3.
#1 is not in POET's control, but #5 (and #3 also) is being addressed with the development of the POET TDK.
It makes me wonder if POET and Pellegrino discuss - on an ongoing basis - what is most likely to lead to a high valuation (or conversly what is dragging it down). Clearly, everyone requesting a valuation want's it to be as high as possible. It seems to me that if the process is going to take 3-4 months, that part of that time might be spent tightening up any loose bolts to get the valuation up. Does anyone have any experience with these types of valuations?
