News: Optoelectronics
22 February 2022
POET proceeding with ten-for-one share consolidation on TSXV
As the next step in the process to achieve listing on the Nasdaq Capital Market, POET Technologies Inc of Toronto, Ontario, Canada — a designer and developer of the POET Optical Interposer and photonic integrated circuits (PICs) for the data-center and telecom markets — has determined to proceed with a ten-for-one consolidation of its common shares in order to meet Nasdaq listing requirements and the company’s own post-consolidation price target.
The firm expects that trading of the common shares on a post-consolidation basis on the TSX Venture Exchange (TSXV) will commence on or about 28 February. Its name and trading symbol (‘PTK’) on the TSXV will remain unchanged. The consolidation was previously approved by the board on the recommendation of its subcommittee, as well as by shareholders at their recent annual general and special meeting.
The board believes that the consolidation will result in a number of potential benefits to POET, including meeting the minimum bid price requirement for the Nasdaq listing and achieving a post-consolidation share price target that will support attracting a broader institutional investor base for the company. The firm has been notified that an approval letter from Nasdaq will be issued following a minimum 5 days of trading of its post-consolidated shares on the TSXV. The common shares are expected to begin trading on the Nasdaq about 7–10 days following consolidation, but the timing cannot be assured. Once final, the shares will trade on the Nasdaq Capital Market under the symbol ‘POET’.
“We have said that we would uplist to the Nasdaq when the time was right and from a position of strength, and we believe that time is now,” says chairman & CEO Suresh Venkatesan. “We are making substantial progress across a broad range of prospective customers with both standard and advanced products. Although there is still much work to be done in collaboration with customers and suppliers to achieve commercial success, it is abundantly clear to us that the company is moving in the right direction, both technically and commercially,” he adds. “We believe we should act now and advance to a stock market where we believe POET’s accomplishments and future potential will be more widely appreciated and rewarded.”
The consolidation has no material impact on the dollar value of investor’s shares. The 364,967,272 common shares currently issued and outstanding will be reduced to about 36,496,727 on a post-consolidation basis. No fractional common shares will be issued as a result of or upon the consolidation. All fractions of post-consolidation common shares will be rounded down. Outstanding stock options and share purchase warrants will also be adjusted to give effect to the consolidation in accordance with their terms. The consolidation will not affect any shareholder’s percentage ownership in the company other than by the minimal effect of the elimination of fractional common shares, even though shareholder ownership will be represented by a smaller number of common shares.
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