POET +43% after inking $50M EOI optical deal with Lumilens, with a $500M potential pipeline

Source: [https://www.poet-technologies.com/news/poet-technologies-and-lumilens-advance-wafer-level-photonic-integration-for-next-generation-ai-optical-networks](https://www.poet-technologies.com/news/poet-technologies-and-lumilens-advance-wafer-level-photonic-integration-for-next-generation-ai-optical-networks)

POET Technologies Inc. ("POET" or the "Company") (NASDAQ: POET), a leader in highly integrated optical engines and light sources for AI networks, and Lumilens Inc. ("Lumilens"), an emerging leader in high-performance scale-up and scale-out optical interconnects for AI workloads, today announced they have entered into a supply agreement that establishes a strategic joint development and commercial technology partnership to advance a new class of wafer-level photonic integration for frontier AI infrastructure.

Modern AI computing was made possible by successive leaps in wafer-level integration: first 2.5D electrical interposers that brought GPUs and HBM into a single package, then hybrid bonding that enabled today's HBM stacks and 3D logic. The optical layer, now the defining bottleneck for scaling AI, has not made that leap. At the center of the POET/Lumilens joint development program is a new paradigm for integration and module fabrication – the Electrical-Optical Interposer (EOI) – combining alignment-free wafer-level optical engine production with next-generation optical chipsets and advanced manufacturing capabilities, all to meet the ever-growing demands for scale and performance in AI infrastructure.

The supply agreement between Lumilens and POET establishes a commercial framework to support the joint development program, and, as part of that framework, Lumilens has placed an initial purchase order with POET for the manufacturing of EOI-based engines valued at $50 million. This purchase order represents the first phase of a broader supplier relationship that could scale to $500+ million in cumulative purchases from POET over five years.

In connection with the supply agreement, and to align both companies to the long-term value created through the partnership, POET has granted Lumilens a warrant to purchase up to 22,921,408 common shares. The warrant is immediately exercisable for 2,292,140 shares, with the remaining shares vesting and becoming exercisable in tranches based on cumulative payments by Lumilens toward future purchase orders totaling up to $500 million. The warrant is exercisable over nine years at an exercise price of $8.25 per share.

[+11% after-hours because of earnings](https://preview.redd.it/tpseoj1bk71h1.png?width=957&format=png&auto=webp&s=526cb0ad05d63edfd7a60a5435eebdb0caf66566)