brundallreturns:

"Management needs cashflow enough to pay their salaries, fees and expenses until sufficient revenue flows from InP to be self sustaining. I would guess $10 million may suffice in that regard but management may agree to less to get the backing they need."

I think Poet made a bid. I think Poet is the best fit. I think Poet will make it. I don´t know how much money we are talking about. But we are talking about starting a new production line and a lot of r&d, so I expect a considerable amount, spread over several years.

The negative: This money (if granted) wil be for the specific purpose "GaAs in India" only. India will never allow Poet to use it for their general expenses. It will help us not to bridge cash demand until InP is a winner.

The positive: Ahasja made a good point at the german forum: If Poet wins the bid, the share price should go up. If the sp goes up, more warrants should be executed. If this happens, cash comes in. (A lot of "if"s, and I don´t know if it is enough)

So winning the Indian Tender would be great in the long run, but if Poet doesn´t make enough money with its InP/dielectric devices near term, they will probably need more external money.

Management recognised their GaAs-Platform will need much more time and Poet is not able to finance this on its own. That was the reason to move over to InP/athermal/dielectrics. It was the right decision to save Poet - I hope they were early enough to avoid raising more capital for general expenses.

Holk