Here's the initial announcement. A few things to point out.
POET’s Chief Executive Officer, Dr. Suresh Venkatesan, commented, “We believe this offer, and the anticipated agreements, once completed, represent a compelling opportunity to leverage our assets and inject non-dilutive capital into POET. The deal further allows POET to pursue a ‘fab-light’ strategy with a less capital-intensive business model that is focused on growing the Optical Interposer business through targeted investments in the design, development and sale of vertical market solutions. At the same time, a well-funded partner capable of making investments in both DenseLight and in additional manufacturing capacity will both support the anticipated ramp of POET’s Optical Interposer and transform DenseLight into a world-class manufacturer with global market reach. In addition to being one of its potentially largest customers, we expect to remain engaged with DenseLight and its partner over the long term for the benefit of both companies. We are very excited about the potential that this represents for all parties to this proposed transaction.”
Just my quick thoughts.
1) The buyer approached Poet about purchasing DL. ( I believe)
2) Poet was infused with non dilutive capital
3) The buyer is assuming all expenses so far
4) The sale is mutually beneficial to both parties
I don't think the buyer would have approached Poet if they didn't see a massive potential.
So far so good for Poet. Now they do plan on using DL in a manufacturing capacity but its not the only source.
And technically I don't see any hold up on Poets side
