Explained: EOS shares down - US Army cancels Stryker project

Dear EOS followers,

Following the news mid-June 2019, when EOS announced that EOS Defense Systems USA was in the race to enhance US Army Strykers to support the development of an up-gunned turret, we now see new developments.

Background
The US subsidiary secured with that contract USD 81,940, with equipment of the brigrade planned for fiscal year 2022.

While the US Army had plans to initially procure three brigade sets of the Stryker MCWS DVH A1 — a total of 83 vehicles per brigade (=249 turrets!!)— the service could procure systems for additional brigades at future decision points.

Although the race was not yet completed, in my opinion, there was a significant chance of EOS' product to succeed, with the company constantly showing full confidence in its superior product and in securing contracts.

However....... This week

US Army cancels Stryker turret project
25-02-20 --- Jane's: Industry questions US Army’s Stryker upgunning competition, Raytheon drops outhttp://www.janes.com/article/94498/industry-questions-us-army-s-stryker-upgunning-competition-raytheon-drops-out?from_rss=1
(currently not able to open the article on the website, unfortunately)

Some key phrases:
'US Army officials were planning to receive six different versions of a Stryker DVHA1 outfitted with an XM813 cannon at Aberdeen Proving Grounds in Maryland this June.'

'However, concerns over mushrooming requirements and evolving evaluation criteria has resulted in at least one company dropping out of the competition, Raytheon.'

'Lexington Institute, a think-tank, first noted programme problems in mid-February'


----------based on sources to Jane's:
'companies competing for the contract are dropping out'

'since then, industry sources have told Jane's that they have either withdrawn from the competition or are considering dropping out because of evolving requirements and the service's decision to change how it will evaluate the bids.'

'only Raytheon publicly confirmed that it had dropped out of the competition'; others unavailable for public statement


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To me, this is the main reason for the share price to go down this hard in the past few days, not the coronavirus outbreak.