Mr. Adrian Brijbassi reports

POET TECHNOLOGIES SIGNS MANUFACTURING AGREEMENT WITH GLOBETRONICS IN MALAYSIA

Poet Technologies Inc. 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. Further information concerning GMSB is provided below. Poet also today 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 7.7 million Malaysian ringgit (approximately $1.7-million (U.S.)) for additional capital expenditures in connection with manufacturing optical engines for Poet over the 2025 to 2027 period.

Separately, and further to the corporation's Nov. 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-per-cent 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 continuing negotiations, and that binding definitive agreements are expected to be signed by Dec. 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 Dec. 12, 2024, Poet is pleased to confirm that the $25-million (U.S.) 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.

About Poet Technologies Inc.

Poet is a design and development company offering high-speed optical modules, optical engines and light source products to the artificial intelligence systems market and to hyperscale data centres. Poet's photonic integration solutions are based on the Poet Optical Interposer, a novel, patented platform that allows the seamless integration of electronic and photonic devices into a single chip using advanced wafer-level semiconductor manufacturing techniques. Poet's Optical Interposer-based products are lower cost, consume less power than comparable products, are smaller in size and are readily scalable to high production volumes. In addition to providing high-speed (800G, 1.6T and above) optical engines and optical modules for AI (artificial intelligence) clusters and hyperscale data centres, Poet has designed and produced novel light source products for chip-to-chip data communication within and between AI servers, the next frontier for solving bandwidth and latency problems in AI systems. Poet's Optical Interposer platform also solves device integration challenges in 5G networks, machine-to-machine communication, self-contained Edge computing applications and sensing applications, such as LIDAR (light detection and ranging) systems for autonomous vehicles. Poet is headquartered in Toronto, Canada, with operations in Allentown, Penn.; Shenzhen, China; and Singapore.

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