Author warns that POET's $400M financing was led by arbitrageur MMCAP, whose warrant structure enables shorting and dilution, creating downside for retail.
POET — AVOID The author argues that MMCAP, the $400M investor in POET at $21.00 per unit, is an arbitrageur using paired common shares and warrants to short the common stock and recycle capital. The mechanism is dilution and selling pressure from MMCAP's warrant-covered shorting, with the recent post-raise 13% collapse into the low $13s as evidence. The stated risk is retail investors being left with a dilutive bag as MMCAP extracts the spread.
By bundling 19 million common shares with 19 million matching warrants MMCAP unlocked a risk-free printing press. They short the common shares to harvest retail FOMO, knowing they can exercise their warrants to cover their tracks and pocket the spread.
This Reddit post, published May 18, 2026, features u/Practical_Chemtrail discussing POET. 1 trade idea extracted by AI with direction and confidence scoring.
Speakers: u/Practical_Chemtrail · Tickers: POET