POET Technologies (POET) and Lumilens said Thursday they have signed a supply agreement for a partnership to develop a new class of wafer-level photonic integration for artificial intelligence infrastructure.
Lumilens has placed an initial purchase order with POET for Electrical-Optical Interposer-based engines valued at $50 million, the companies said, adding that orders may increase to more than $500 million over five years.
POET has granted Lumilens a warrant to buy up to about 22.9 million shares, exercisable over nine years at $8.25 per share, the companies said.
The warrant is immediately exercisable for nearly 2.3 million shares, with the rest of the shares vesting and becoming exercisable in tranches linked to payments by Lumilens for purchase orders totaling up to $500 million, according to the companies.
POET shares were up more than 33% in Thursday trading.
Price: $19.13, Change: $+4.76, Percent Change: +33.09%