POET Technologies Inc (NASDAQ:POET) shares are soaring 15.36% in Wednesday's trading session, building on the momentum from the previous day's impressive gains. This surge comes in the wake of the company's announcement of a significant $75 million private placement deal, marking the largest single investment in POET's history.

On Tuesday, POET Technologies revealed that it had completed a non-brokered private placement with a single institutional investor, raising $75 million in gross proceeds. The deal involved the issuance of 13,636,364 common shares along with warrants, priced at $5.50 per unit. The warrants, exercisable until October 7, 2030, are priced at CAD 9.78 (approximately $7) per share.

Dr. Suresh Venkatesan, Executive Chairman and CEO of the Canadian company, emphasized the strategic importance of this investment, stating, "The massive growth of AI infrastructure represents an unprecedented opportunity for which POET is well-prepared. 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 utilize the net proceeds for various corporate development efforts, including potential acquisitions, expanding research and development, accelerating its light source business, and covering general working capital needs.