Thoughts from Breeze

Hi John,

There are only 3 reasons why POET would do a PP of that magnitude at this time.  The first one is because they need some money to create a joint venture outside China and this time they would need to put down some cash into the deal.

The second one is because they want to buy another business.  That is the least possible of the 3 reasons.

The third one is because someone is positioning itself for a buyout offering of POET…sooner than later.Of course if you start with a 9.99% ownership of Poet, there are better chances that your offer will be accepted.  Better than if you start at 0%.

It’s either one of those 3 reasons and we should know soon enough.  Those institutions who chipped in millions and millions recently into Poet via private deals or buying on the open market ( remember the 12 M volume on July 1st ) were allowed to see behind the curtains for sure.  Now, knowing that they committed tens of millions after that is quite reassuring.

My response:

I think there is a fourth reason.   Suresh is always working on something new and expanding the capabilities of the Optical Interposer. And usually it is more than one thing. Those things take money. Money that he has not had up to now.