Electro Optic Systems (ASX:EOS) closes share purchase plan

• Defence technology company Electro Optic Systems (EOS) has officially closed its share purchase plan, which it announced on April 15
• The company received valid applications from 740 shareholders, totalling $10.78 million
• After an overwhelming response, EOS’ Directors have decided to increase the share purchase plan’s size, to accept all received subscriptions
• The company expects that shares issued under the purchase plan will start trading on the ASX on May 15, 2020
• Electro Optic Systems shares are down 4.3 per cent today, trading for $4.67 per share

Defence technology company Electro Optic Systems (EOS) has officially closed its Share Purchase Plan, which it announced on April 15.

In April, the company announced its intention to raise a maximum of $10 million under the SPP. The share purchase plan closed at 5:00 pm on Friday, May 8, 2020.

The company sent its share purchase plan offer to 8357 eligible unitholders. From this number, EOS received 740 valid applications from shareholders, totalling $10.78 million.

These results indicate that 8.9 per cent of eligible shareholders participated, with an average application of $14,578. The company considers this a sign of strong support for its share purchase plan from EOS shareholders.

EOS’ existing eligible shareholders applied for new ordinary company shares, at an issue price of $4.40 each. The result was the aggregate amount of approximately $10.78 million.

This was based on the volume-weighted average price of EOS’ shares which traded on the ASX in the five trading days up to May 8. In comparison, institutional investors paid $4.75 each for shares issued under an institutional placement. That placement, which raised $134 million, completed on April 16, 2020.

While the original intention was to raise no more than $10 million, the share purchase plan had an unexpectedly overwhelming response. As a result, EOS’ Directors made the decision to increase the size of the share purchase plan.

By doing so, the company will be able to accept the full number of SPP subscriptions it received, maintaining those shareholder’s support. There will be no scale-back of shares applied for under the share purchase plan, so all applicants will receive the shares they applied for.

EOS says that the 2,451,463 new shares from the purchase plan will be issued on May 14, 2020. The holding statements will be dispatched on the following day.

The company expects that shares issued under the Purchase Plan will start trading on the ASX on May 15, 2020. 

Electro Optic Systems shares are down 4.3 per cent today, trading for $4.67 per share at 12:40 pm AEST.