Key Takeaways:
- POET shares fell 7.3% on May 29, extending a 40% decline from mid-May.
- Marvell canceled all Celestial AI purchase orders over confidentiality breaches.
- A $400M offering added 19M shares, diluting existing shareholders.
Key Takeaways:

POET Technologies shares fell 7.3% to $13.04 on May 29, extending a 40% decline from the mid-May peak after Marvell Technology canceled all purchase orders from Celestial AI, which Marvell acquired in February. The stock had surged more than 86% in May before the reversal, powered by optimism around POET's $50 million Lumilens deal.
"POET has not been fully transparent about its business dealings following the reported cancellation of orders from Marvell Technology," Night Market Research said in a report earlier this month, disclosing it holds a short position in the stock. The firm described Lumilens as "an obscure startup" with little intention of fulfilling the purchase agreement.
The $400 million registered direct placement closed May 18, adding 19 million common shares and matching warrants priced at $21 per unit. POET's outstanding share count has swelled 303% from roughly 38 million at the end of 2022 to 172.6 million, with further dilution possible if warrants are exercised. The company said proceeds will fund manufacturing expansion, research and development, acquisitions, and scaling of its light source business.
POET reported Q1 revenue of just $503,389 and a net loss of $12.3 million. Cumulative revenue since 2020 totals $2.3 million. Operating cash flow was negative $8.8 million in the most recent quarter, while free cash flow came in at negative $11.2 million. Returns on equity and assets stand at minus 95% and minus 49%, respectively.
Short interest has climbed to nearly 18% of the float, the highest since August 2025, according to Nasdaq data. Wolfpack Research also disclosed a short position, alleging POET could qualify as a Passive Foreign Investment Company, potentially exposing U.S. investors to stricter IRS reporting requirements and higher tax liabilities.
The stock now trades below the $21 placement price that was meant to signal institutional confidence. A securities class action filed May 28 names CEO Suresh Venkatesan and CFO Thomas Mika as individual defendants, alleging violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. The lawsuit covers purchases of POET common stock between April 1 and April 27, 2026. The lead plaintiff deadline is June 29. POET has yet to issue a public statement on the allegations.
This article is for informational purposes only and does not constitute investment advice.