POET Technologies Inc (NASDAQ: POET) shares surged 9.64% in pre-market trading on Wednesday, following the announcement of a significant private placement deal. The company revealed on Tuesday that it had completed a non-brokered private placement with a single institutional investor, raising $75 million in gross proceeds - the largest single investment in POET's history.

As part of the deal, POET Technologies issued 13,636,364 common shares along with warrants, priced at $5.50 per unit. The warrants are exercisable at CAD 9.78 ($7) per share until October 7, 2030. This substantial capital injection is expected to bolster the company's position in the rapidly growing AI infrastructure market.

Dr. Suresh Venkatesan, Executive Chairman and CEO of POET Technologies, expressed enthusiasm about the company's future prospects, stating, "With a war chest of over $150 million in cash and no significant debt, we are now able to scale up our own growth ambitions in the market for advanced AI hardware solutions." The company plans to use the net proceeds for corporate development efforts, expanding research and development, accelerating its light source business, growing operations, and covering general working capital needs.