Electro Optic Systems Holdings Limited (ASX: $EOS) has announced a A$35 million fully underwritten institutional placement and up to A$5 million share purchase plan. The company aims to capitalize on near-term organic growth opportunities and support future sales growth in key global markets through investment in critical weapons supplies and other long lead time equipment components.
The equity raising enables EOS to better capitalize on near-term growth opportunities by investing in long-lead items particularly cannons and other items. EOS has significant near-term opportunities in RWS and particularly those with counter-drone applications, driven by geopolitical uncertainty and the changing nature of warfare. EOS' customer base has widened and this equity raising will support servicing market demand for EOS' innovative products. In 2023, EOS delivered record revenue and operating cash flow as well as implemented a number of initiatives to focus on the acceleration of organic group.
Electro Optic Systems (ASX: $EOS) is raising A$35 million via a fully underwritten institutional placement and up to A$5 million through a share purchase plan to support future sales growth in key global markets. The company aims to invest in critical weapons supplies, specifically RWS cannons, and other long lead time equipment components. The geopolitical uncertainty is creating supportive market conditions for remote weapon systems, particularly for counter-drone products, and Electro Optic Systems has recently demonstrated a strong track record in winning contracts, which is expected to drive momentum for the future. Shareholders are provided with the opportunity to participate in the equity raising, and the company anticipates a pro forma cash and short-term deposits balance of ~A$73 million post equity raising to support its future endeavors.