POET Technologies (TSX:V.PTK, Stock Forum), the developer of the planar opto-electronic technology (POET) platform announced today that the company had received an updated valuation report from Pellegrino and Associates LLC (“P&A”).
According to the news release, the company requested an updated report back in January, 2014 since it felt that the previous report submitted by P&A in 2010 was based on assumptions, matrices and key value drivers that were outdated or otherwise no longer relevant.
The report was generated utilizing 10,000 simulations on two income valuation models using a Latin Hypercube sampling algorithm for 10,000 total value calculations which indicated the fair market value of the Subject Property in the markets, at a 90% confidence level, was between $851,235,961 and $4,271,102,920.
Therefore, in P&A's opinion, with a reasonable degree of probability within the valuation profession, fair market value of the Subject Property with regards to its POET licensing program is $2,330,489,354.
The release went on to stress that the valuation was not an indication of interest by any party nor did it represent an actual offer to purchase the POET intellectual property. It also noted that the POET technology is still under development and there were no assurances that it would be completed, brought to commercialization or that the target markets would adopt said technologies. Commercial applications for POET would not be likely to be available for several years, if ever.
Also the report was clarified as not necessarily reflecting the actual price the company would realize from a true sale of its technology in a real market, but was geared to reflect notional value in an assumed market.
P&A generated the report in accordance with the Uniform Standards of Professional Appraisal Practice and has no contingent interest in the company. Since the report contains a great deal of proprietary and sensitive confidential information, it will not be made public in its entirety, rather an approved summary will be filed on the company's website and SEDAR as well as Edgar.
POET was in the news recently when the company announced mailing proxy material in the middle of July.
Shares gained 5.43% on the news to $1.36 per share.
Currently there are 163.2m outstanding shares with a market cap of $221.9 million.