POET Technologies Inc. (NASDAQ: POET) experienced a modest decline in its stock price on Friday, closing at $14.59, down 1.55% on the Nasdaq. The dip came despite the company finalizing a substantial $400 million private placement with a single institutional investor. In after-hours trading, shares edged slightly lower to $14.54.
Trading volume reached 33.4 million shares, a significant drop from the 100.6 million shares traded on May 15, but still elevated for the small-cap AI-photonics firm. The stock has seen notable volatility in recent sessions.
The Toronto-based company, which specializes in photonic integrated circuits that use light for data transmission, issued 19.05 million shares and an equal number of warrants as part of the non-brokered deal. CEO Suresh Venkatesan stated that the funds would be used to boost manufacturing capacity approximately tenfold, aiming to increase output ahead of 2027. The warrants grant the buyer the option to purchase additional shares at $26.25 each.
In a regulatory filing, POET outlined that the capital would support manufacturing scale-up, potential acquisitions, research and development, its light-source business, and general working capital. The stock decline occurred even as major U.S. indexes posted gains, with the Dow, S&P 500, and Nasdaq Composite all rising on Friday.
POET and its partner Lumilens recently secured a $50 million initial order for optical links designed to enhance AI data center performance. The companies highlighted that GPU interconnects have become a critical bottleneck for scaling AI. The agreement has the potential to expand to over $500 million over five years.
The company reported first-quarter revenue of $503,389 and a net loss of $12.3 million, or 8 cents per share. Venkatesan noted that recent deals with LITEON, Lessengers, and Lumilens validate growing demand for POET's Optical Interposer platform.
Investors are closely watching whether the $400 million capital infusion will translate into tangible manufacturing progress, customer wins, and revenue growth. The company faces risks, including potential delays, order cancellations, and dilution from the warrants. In April, Celestial AI canceled all purchase orders with POET, and new risk disclosures cast uncertainty on future business with Marvell Semiconductors, which now owns Celestial AI.
As markets reopen this week, focus is shifting from headline-driven moves to concrete execution. The success of the capital raise in driving production and customer adoption will be key to POET's valuation going forward.
