So you wonder why players are less interested in investing in POET today? We have a system failure here both internal as external. I will give you my personal analysis below and recommendations for the company.

External: You can see that the economic landscape is changing, becoming more complex and less certain than the past decade. While POET can't alter demographics or decarbonization, both of which have a strong inflationary and indirectly negative impact on POET, they can adapt to multi-globalization.

If we zoom out for a moment, we can see a world that opened up from the late 1980s: with leaders like Reagan and Thatcher, the fall of the Berlin Wall, and China's accession to the World Trade Organization. It was a unipolar world where the United States held the reins. Between 2001 and 2008, world trade grew by almost 6% per year, propelling the global economy. That was the era of hyper-globalization. However, around 2008, globalization reached its peak, and it had nothing to do with the global crisis at the time. What was the cause? Around that time, companies encountered the limits of efficiency in the global value chain, which had become overly complex. In times of offshoring, components of products crossed multiple national borders before being assembled into a final product, which is now extremely complex and not cost-effective. This led to limited "reshoring," where products were manufactured closer to home, and this reshoring tendence never stopped until today. It's something POET needs to consider in its strategy to minimize the complexity of its value chain and organize it more locally. This is an extremely challenging task for an integration company like POET, but it's essential.

Between 2013 and 2017, world trade grew by only 2.8% per year, meaning it contributed to a slowdown in global growth during that period. Moreover, labor costs in China had already risen to the point where it was becoming financially less appealing to produce there. Trade with China further decreased due to the ongoing trade war with the United States and rising import tariffs. The US-China trade war continues. It's highly likely that Europe will also introduce protectionist measures, especially concerning the import of electric cars from China, particularly if they pose a real threat to the sales of French and German automobiles. All of this was happening even before COVID-19. The pandemic exposed the drawbacks of globally spanning value chains. Companies now prefer redundancy over just-in-time deliveries, although this comes with an associated cost.

In short, we're witnessing the construction of literal and figurative walls again. The world is becoming less open and more multipolar. Therefore, globalization has been on the decline since 2008. However, while international trade in goods is growing less than before, international trade in services is on the rise. Moreover, international trade is no longer the almost exclusive domain of China. Many other countries are actively participating in global trade, both in goods and services. This is what you refer to as "multiglobalization." It's no longer solely about the US and China. The "multi" in "multiglobalization" encompasses various aspects. In addition to world trade in goods, there is also an increasing amount of international trade in services. China is no longer the sole leader, as was the case during the hyper-globalization period, and there will be less and less export from China. China has to share the stage with more and more emerging countries. To make this more concrete: in 1990, services constituted only 9% of international trade flows, in 2008 it was 12%, and today it's 20%. This change is largely due to digitalization. It's becoming easier, for example, to hold meetings and work without the need for physical presence. Think about the rise of call centers and remote IT services. We might even receive lessons from competent but more affordable teachers from places like India soon. Other countries that are becoming more important in this era of multiglobalization include Vietnam, Mexico, Taiwan, Malaysia, and South Korea. It's important to note that for POET, China still remains a significant and important market, as you rightly pointed out, and it was wise to start there in my opinion. However, a second joint venture that isn't China-oriented is indeed necessary. Singapore is an excellent location, and I hope they find a partner in that region. Personally, I see Europe as the right place to expand into.

In the industry, we're witnessing a shift from "offshoring" to "reshoring" and even "friendshoring." Instead of extensively dispersing the entire value chain, companies are bringing back the production of (parts of) products closer to home, sometimes even in Europe or the United States. Control over resources and the pursuit of "friendshoring" has become a prominent concern for many countries. This applies to rare earth metals, for instance. These are essential resources extracted in very low concentrations. The United States has vast quantities of them, but mining them wasn't cost-effective. China heavily invested in the extraction of rare earths and is now reaping the benefits. Meanwhile, many countries are actively working on resource security.

Internal: Currently, the company operates on a runway of approximately four months, with the suspension of an ATM offering raising questions – is it due to a lack of interest or other undisclosed reasons? Unfortunately, there is no clear communication regarding this matter.

Are we to believe that POET plans to scale up without financial backing? A lack of funds and/or a lack of communication are the driving factors pushing people towards exit strategies, especially when there are numerous stable, fixed-interest investment alternatives readily available. It's as straightforward as that.  As Suresh rightly pointed out, the onus is on POET to deliver. Only through tangible results can they attract the necessary funding. They must first substantiate their potential. So, the message is clear: POET, it's time to put in the hard work and prove your worth.

So, again, why isn’t anyone, even the Canadian government, considering investing here?

1. Bad climate  accept and go on

2. No communication  FOCUS ON: COMMUNICATING

3. Bad financial position  FOCUS ON: FUNDING AND DELIVERING

4. Other (fixed interest) investments  accept and go on

5. Changing economic situation  FOCUS ON: EUROPE, SINGAPORE, RE AND FRIENDSHORING