Paradis Labs Precise Market Analysis

$IQE to raise £81M: 1. $MTSI invest £45M via equity + CLN + multi-yr LTA for epi wafers 2. Institutional placing + offer to existing UK retail shareholders at 19.8p (58% discount) 3. Participation from existing convertible noteholders (~£23M reinvested) Proceeds repay bank debt, redeem loan notes and fund core tech/capex. $MTSI say - "We believe this transaction will strengthen our supply chain resilience, while positioning $IQE to improve its balance sheet and financial performance across its business” What it means for $IQE: - operating biz is materially stronger: debt-free(er) & LTA-backed utilisation ramp via $MTSI - once the dilution digests & 2027 numbers show margin expansion from higher utilisation, $IQE can re-rate on visible AI-driven rev growth - near-term, things will be volatile (lower share price) - but the fundamental derisking is pretty huge - plus, wider AI tailwinds remain My view: - overall positive - textbook capital raise for an AI supply chain play - retail tranche shows thoughtful shareholder management = positive signal on management - $MTSI partnership + clean balance sheet outweigh the dilution - acts as a de-risking catalyst - dilution is the price paid for removing the debt overhang + securing commercial upside Imo this $MTSI partnership de-risks $IQE as a critical point in the supply chain quite significantly. If you're looking to enter for the first time, I'd suggest waiting for the dips over the next few days/weeks first. I have a very low cost basis - so I’m maintaining my full position & will add on any incoming dips.

LPKF Laser are kinda interesting. Initial notes are: -> Owns LIDE - only 2-step laser + etch process hitting 5µm vias at 50:1 AR on glass panels. -> Every serious glass substrate player (SEMCO, SKC Absolics, LG Innotek, DNP, Intel) is a customer, partner, or in qualification. -> Their LIDE process is the only one hitting the spec envelope $AVGO/ $AAPL/ $NVDA ASICs actually require? -> €337M MC - seems to be priced as a solar-drag industrial laser co. Not as a chokepoint of the packaging transition. -> Pretty ugly P&L. I started a small position yesterday which I'll build out next week depending on how I feel when the time comes.