POET completes sale of DenseLight subsidiary

POET Technologies Inc of Toronto, Ontario, Canada and San Jose, CA, USA — a designer and manufacturer of optoelectronic devices, including light sources, passive waveguides and photonic integrated circuits (PIC) for the sensing and datacom markets — has completed the sale of its Singapore-based subsidiary DenseLight Semiconductors Pte Ltd to DenseLight Semiconductor Technology (Shanghai) Ltd (DL Shanghai, a special-purpose company organized by China Prosper Group on behalf of a consortium of investors).

POET’s shareholders approved the sale with 99% of votes submitted at a Special Meeting on 24 October.

The first tranche payment of US$8m has been received in return for which POET initiated the transfer of 30% of DenseLight shares to the buyer. The remaining 70% were placed in escrow, to be released upon receipt of the remaining two payments of US$13m and US$5m (which are expected to be made on or before 31 December 2019 and 31 May 2020, respectively).

POET says that, as a result of completing the sale, it is no longer responsible for DenseLight’s expenses, enabling further execution on POET’s objective to operate according to a ‘fab-light’ strategy.

Concurrent with the closing, POET repaid in full its loan to Espresso Capital and other parties as well as discharged all associated security interests in POET’s assets (which are no longer subject to any material liens or encumbrances).

See related items:

POET’s $26m sale of DenseLight subsidiary to close on or before 8 November

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