POET Technologies – Valuation Update

January 20th, 2014

Toronto, ON, and Storrs, CT, January 20, 2014 – POET Technologies Inc. (TSX-V: PTK, OTC: POETF) (“the Company”) – developer of the proprietary planar-optoelectronic technology (“POET”) platform for monolithic fabrication of integrated electronic and optical devices on a single semiconductor wafer – announced today the completion by the Special Strategic Committee (“SSC”) of a detailed review of the certified valuation engagement report prepared in 2010 by Pellegrino and Associates (the “Pellegrino Report”) which was disclosed in a press release disseminated and filed on SEDAR on March 2, 2011.
The Pellegrino Report (partially redacted), which was prepared under prior management of the Company, was filed on SEDAR.

The SSC was established in June 2013 to investigate and initiate strategic alternatives for the commercialization of the POET technology platform using a multi-faceted approach based on discussions with potential industry partners. As part of its investigative efforts and in keeping with the Company’s ongoing continuous disclosure obligations, in consultation with the author of the Pellegrino Report, the SSC has determined that many of the assumptions, matrices and key value drivers upon which the Pellegrino Report was based are outdated or otherwise no longer applicable or relevant with the passage of time. Therefore the Company has decided to engage Pellegrino & Associates, LLC to refresh the valuation based on current fact patterns.

In recalculating the value models, Pellegrino and Associates will be performing a regression analysis of the key value drivers
associated with each of the value models including:

  • the general computer marketplace;
  • the ability to close a deal successfully;
  • the ability to execute strategy in the various originally and currently anticipated markets for the POET Technology;
  • the ability to successfully conclude a renegotiation of the amount of the UConn royalty on more favorable terms which is currently in progress; and
  • the ability to develop a fully functioning product in the shortest amount of time.

It is anticipated that the refreshed valuation report will take approximately 3 to 4 months for completion and review. It is expected to provide useful information and be a beneficial aid, along with many other internal management tools, to assist the Company in assessing market potential and achieving its goal of commercialization of the POET Technology.

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