Bombed out Electro Optic Systems raising at 22pc...

Bombed out Electro Optic Systems raising at 22pc discount
Australian Financial Review - Street Talk
Jun 28, 2022 – 10.44am

ASX-listed defence and communications company Electro Optic Systems is offering shares at the lowest price in six years, in a bid to raise $15 million before its June 30 half-year balance date.

The company’s broker Petra Capital launched the equity raising on Tuesday morning, seeking buyers for new shares at $1.20 each,

EOS shares went into a trading halt on Tuesday morning.

The deal was split into a $15 million placement and $2 million share purchase plan. It was priced at a 22.1 per cent discount to the last close, according to terms sent to potential investors.

The deal comes with the company’s shares down 35 per cent this year and 65 per cent in the past 12 months, to be trading at their lowest levels since 2016. Its market capitalisation was $231 million before the raising.

The company had $35 million in borrowings at December 31 that were payable by September 2022, according to its annual report in April.

It was sitting on $28.1 million cash at March 31, and used $21.2 million cash in the first quarter of the year, according to its March quarter activities report.

The raising comes as EOS has also had Greenhill & Co working on a strategic review, looking at options to maximise value from its portfolio of businesses. EOS has a project, SpaceLink, that requires $US250 million in capital.

Petra was calling for bids by 4pm on Tuesday.

Relaying the paywalled article here.....even the AFR title "bombed out Electro Optic Systems" tells you it's common knowledge this company is being run into the ground, it's absolute chaos. Must be an embarrassment for the engineers and other employees to be associated with EOS, it's now a laughing stock in the media.