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POET Technologies, the designer and developer Photonic Integrated Circuits (PICs) for the data center and telecommunication markets, has successfully closed the sale of its DenseLight subsidiary in Singapore and the receipt of the first tranche payment from the Buyer.
The company completed the sale of its wholly-owned subsidiary, DenseLight Semiconductors Pte. Ltd., to a consortium of investors organized under DenseLight Semiconductor Technology (Shanghai) Ltd. POET shareholders approved the sale with 99% of votes submitted at a Special Meeting held on October 24, 2019. The first tranche payment was received in the amount of USD 8 million in return for which the company initiated the transfer of 30% of DenseLight shares to the Buyer. The remaining 70% of the shares were placed in escrow, to be released to the Buyer upon receipt of the remaining two payments of US$13 million and US$5 million, which are expected to be made on or before December 31, 2019, and May 31, 2020, respectively. As a result of the completed sale, POET is no longer responsible for the expenses of DenseLight, therefore enabling further execution on its objective to operate the company 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 the assets of POET Technologies. The assets of the company are no longer subject to any material liens or encumbrances.
