POET Technologies Inc (POET) saw its stock price plummet 11.37% in pre-market trading on Tuesday, extending recent losses.
The sharp decline follows the completion of a $400 million registered direct offering, which involved issuing approximately 19 million common shares and an equal number of warrants to a single institutional investor. This significant share dilution has weighed heavily on the stock price. Additionally, the company reported disappointing first-quarter results, with an EPS of -$0.08 missing the analyst consensus estimate of -$0.05 by 60%.
Further selling pressure appears to be driven by profit-taking activity after the stock's recent 43% single-day surge, coupled with market concerns raised by a short-seller report questioning the company's partnerships.