When I look back and see how Suresh made the choices that he did, I think that I might have done the same thing. For someone who seems to be totally immersed and driven and a passion to be part of a historic disruption in digital and optical technology that would benefit and enhance the way things are communicated and done today, he has been forced to make some harsh decisions.

Considering the changes and decisions that have been made and done since the THM and unknown at the time, this would have been a very different looking company  from where we are sitting at today. I believe there was a plan and vision presented from Ajit and Suresh, that was doable and was taking place and being executed, until the unforeseeable problems turned up.  I think we would have had a share price possibly near the dollar mark and prototypes being presented to the market at anytime.

I believe that they really expected to acquire Anadigics without all of the manipulation and resistance that seemed to be encountered and quite possibly created by rival competing company’s (which have been talked about). These companies would have no problem with POET being stopped, or greatly impeded, from delivering there product to fruition in a timely manner. Maybe even causing POET to go bankrupt. I don’t think it would have hurt their feelings at all.

So with Suresh facing the first obstacles of resistance from trying to get Anadigics and keeping a timeline in check, he had to figure out a plan "B" with pressure building from keeping shareholders in the loop and progress and goals being reached on time. Without any changes and possibly more delays from U.S. Exporting Authorities and having priority delays from our foundry partner(s).  This from NR (As a small company with limited prototype runs, we do not represent a large current account to these vendors and lead times can sometimes extend to months),  I think the pressures of cash burn, upcoming uncertainty in U.S. politics and updates and answers to shareholders, forced him to make the decisions that was also condoned by management and the BOD.

So to be almost totally independent and unrestricted and proceeding on his timeline and not worry about uncontrolled delays, a financing totally surprised by most and needed to fulfil the goals that were originally presented at the THM was needed. This would give Suresh control to use his knowledge, contacts and vision to carry on without barriers and roadblocks using his discretion. Also initiating a need to know information policy, leaving shareholders in the dark and unhappy, but would protect company assets and in turn get the best value for the company and shareholders.  I believe that the share dilution and pricing was not what he wanted, but will end up being a non event when Poet becomes what he has envisioned it to be.

This is also from NR.  To Our Shareholders,

Following today’s close of our public offering, which generated aggregate gross proceeds of C$12,528,000, I would like to address the concerns expressed by several of our shareholders and expand further on the Company’s rationale for raising additional capital at this time. Let me emphasize that the decision to raise capital was made following careful evaluation and consideration by POET’s executive management team and the Board. Our increased manufacturing capability in Singapore fundamentally changes the Company’s capital investment priorities. We therefore collectively determined that the offering was essential in order to make critical investments in multiple areas of the business.

So from where we sit today, after the slide show and limited info from PIC, it does look like Poet is back on track and close to achieving the goals (again) set out in the THM. With more products being offered and sold thru Denselight (NLWL, DFB lasers, Gain Chips and Sleds) and some agreements in place with Luxmux and orders from Chinese Co for DFB lasers. Second half of 2017 a low loss, low cost micro multiplexer and de-multiplexer product for 100G and above transceivers from BB Photonics. Not to mention NRE revenue from key clients. (Mentioned below)

Business Outlook from NR Nov 28

The Company will not be able to reconfirm its previously provided guidance to achieve revenue of US$2,000,000 in the second half of 2016, primarily as a result of unexpected production delays at its Singapore fab. It was anticipated at the completion of the DenseLight acquisition that changes were needed in the operations and organization of the business unit, a strategy for which has been developed and is being implemented.  Substantial progress has been made to date and will continue into 2017. The new guidance is for revenue in the range of US$1,600,000 to US$1,800,000 for the second half of 2016, and depends on closing and shipping multiple orders for sensor products, 2.5G DFB lasers and the timely completion of NRE for key clients.  Even with the reduced revenue guidance, the Company has achieved significant quarter on quarter revenue increases and expects that the DenseLight business unit will develop into a robust platform for the commercialization of POET technology.  The Company anticipates continued revenue growth at DenseLight and its intention to reach positive operating cash flow by the first half of 2017.

Actually I am looking forward to 4th Qtr and Yearend Financials and even more to 1st Qtr Financials. Looking back, I think that Suresh doing the PO was a choice between a rock and a hard place and had to be done to get back control in his hands of Poets timelines and goals. As most of this message conveys, I am the eternal optimist even with a dilution in the company and low share price. I am a believer that Poet will prevail with their goals and become a disrupting behemoth of a company.         

Ron