Stunned, page-13

Guess who’s stunned as well? Rowan Gilmore, CEO of EM Solutions and now our new deputy CEO.

EOS financed the takeover of EM on 1 oktober 2019 with the issue of 4,271,357 EOS ordinary shares and a very small cash payment of $1.485 million. This represented at the time a takeover price of around 26 million, or 5,74 dollar per EOS share.

The profitable and growing business of EM seemed to be valued cheap, but Rowan did the due diligence investigation and as an industry insider should have been able to weigh the blue sky prospects of Ben Greene. A few months later the share price hit an all time high of 10,80 dollar, valuing the deal at almost 50 million dollar.

At the current EOS share-price the deal is now however valued at less than 10 million, while the EM Solutions business has grown significantly in the mean time:

From the half year ended 30 June 2021 report:

‘For the first half of 2021, EM Solutions booked record revenues of 13,1 million (H1 2020: 8,7 million) and record EBIT. The order backlog remans strong at 17 million as of 30 June 2021.’

I hope Rowan can get EOS back on the growth trajectory.