POET Technologies signs agreement with Globetronics in Malaysia
POET Technologies has signed a Master Agreement, an Optical Engine Purchase Agreement and a Deed of Consignment with Globetronics Manufacturing Sdn. Bhd (“GMSB”), to manufacture optical engines for POET in Penang, Malaysia.
POET has also provided an update on the announced acquisition of the minority equity interest of its existing joint venture in China, Super Photonics Xiamen (“SPX”) and its recently announced public offering.
POET has engaged GMSB to assemble and test Optical Engines based on designs made exclusively by POET. The Deed of Consignment relates to a suite of wafer-level process equipment recently purchased by POET that is being installed at the GMSB facility in Penang. Concurrent with the Deed and a Purchase Agreement, the Parties entered into a Master Agreement, covering a period of three years, which governs the overall relationship between the Parties. POET and GMSB have prepared an initial project plan and statement of work for the installation and start-up of the consigned tools, the costs for which will be absorbed by POET. POET will submit purchase orders under the Optical Engine Purchase Agreement, with pricing to be based on specific optical engine types. Globetronics Technology Berhad (“GTB”) has allocated RM7.7 million (approximately US$1.7 million) for additional capital expenditures in connection with manufacturing optical engines for POET over the 2025-2027 period.
Separately, and further to the Corporation’s November 25, 2024 announcement of a binding Memorandum of Understanding (MOU) with Quanzhou Sanan Optical Communication Technology Co., Ltd. (“SAIC”) to transfer to POET its 24.8% stake in the joint venture SPX, along with all the production equipment previously leased by SAIC to SPX, POET is pleased to confirm that the parties expect to shortly conclude their ongoing negotiations and that binding definitive agreements are expected to be signed by December 31, 2024. Terms of the transaction with SAIC remain subject to finalization and are expected to be announced upon signing of the definitive agreements As previously disclosed, it is the Corporation’s intention following completion of the transaction to continue to operate SPX in a manner consistent with past practice while it brings up a wafer-level assembly operation for optical engines in GMSB, thereby implementing its “China Plus One” strategy.
As a further update to the Corporation’s public offering announced on December 12, 2024, POET is pleased to confirm that the US$25 million offering has been fully subscribed by a single institutional investor. The closing of that offering is now expected to take place after completion of the SPX acquisition described above. Terms of the offering remain unchanged from those previously announced, and the offering remains subject to the receipt of all regulatory approvals, including the final acceptance of the TSX Venture Exchange, and the satisfaction of other customary closing conditions.
