- Electro Optic Systems’ (EOS) shares have dropped after the company flagged the need for more funds
- The company is looking to raise up to $17 million via a placement and share purchase plan
- The funds will go towards working capital and near-term requirements as EOS works to finalise its strategic review and funding options for SpaceLink
- Its revenue has been impacted by two contract delays and the Federal election in May, resulting in an expected EBIT loss of about $45 million for 1H FY22
- Shares have dropped 27.6 per cent today to $1.12 each at 3:30 pm AEST.
Electro Optic Systems’ (EOS) shares have dropped after the company flagged the need for more funds.
The company launched a share purchase plan (SPP) and placement to raise up to $17 million for capital requirements.
However, these funds will only assist in the near term as EOS works to finalise its strategic review.
This review will determine the best course of action for funding the US$280 million (A$405.27 million) capital requirement for SpaceLink.
Its revenue has been impacted by two contract delays and the Federal election in May, resulting in an expected Earnings Before Interest and Tax loss of about $45 million for the first half of the 2022 financial year
Nevertheless, the company received binding commitments to raise $15 million through a non-underwritten institutional placement.
This will see 12.5 million new shares issued at $1.20 each, representing a 20 per cent discount to the five-day volume-weighted average price.
In addition, EOS launched a share purchase plan to seek a further $2 million, with shares offered at the same price as the placement.
To further assist its monetary requirements, the company is currently looking to extend the existing RNC facility or source other funding alternatives.
Shares dropped 27.6 per cent to $1.12 each at 3:30 pm AEST.