POET Technologies Plc (NASDAQ:POET) witnessed a sharp decline followed by a recovery in its stock price on Wednesday. Traders actively sold off the equity in the market following the closing of a massive $400 million registered direct offering on Monday.
The capital raise involved issuing 19.05 million new common units and an equal number of warrants to a single institutional investor at $21 per unit.
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Short Seller Alleges Dead Partnerships
Compounding the volatility, short-seller firm Night Market Research disclosed a bearish position against the semiconductor company on Friday. In its published note, the firm alleged that POET has systematically overstated its partnerships and misled investors about its commercialization timeline.
