What a nice NR this morning! Congrats to Suresh, his team and the patient Poet shareholders!
The tech side of the business is reassuring and exciting!
The thing I'm keeping an eye on is the cash Poet has (I wrote about this earlier this month).
Would it be a good move to raise some cash to be in a position of strenght during the negotiations with this third-party?
From the information circular dated october 1st (Share Sale Agreement) on Sedar (bold is mine):
However, if the either the Closing date or the second tranche payment is significantly delayed, and we have not raised sufficient funds to account for such delay, we may not have or be able to raise the additional funds required to allow us to continue operations at current levels or at all.
We obviously don't know what "significantly delayed" implies in terms of weeks/months.
Today's NR tells us that we don't have full control over the newly negotiated second tranche (bold is mine) :
Responding to the coronavirus outbreak, the PRC government has extended the Lunar New Year holiday to February 2 (February 9 in Shanghai) resulting in the closure of all government offices. Once reopened and final approval is received for the Overseas Direct Investment (ODI) applications previously underway, POET expects immediate disbursement of the 2a payment. Receipt of the 2b payment is anticipated to be delayed beyond February due to the extended holiday’s disruption of the ODI application process.
We're at an inflection point of this company history, we are so close to being rewarded, maybe it would be good risk management to add some cash.
GLTA