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‘Never a good look’: Electro Optic Systems punished after DroneShield-style selldown

The surging defence stock has emulated DroneShield again, and not in a good way, with a CEO selldown to pay for a house and divorce triggering a 17% plunge in less than an hour.

Hugo Mathers
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Electro Optic Systems’ high-energy laser weapon, ‘Apollo’, designed to counter unmanned aerial systems and drone swarm attacks. Supplied.

In a near carbon copy of DroneShield’s fateful management selldown late last year, rival counter-drone business Electro Optic Systems (EOS) has rattled investors by confirming its CEO Andreas Schwer, and other members of the leadership team, will dispose of the vast majority of their shares in the company.

Schwer is set to sell up to 2.5 million shares — or around $22.3 million based on the day’s closing price of $8.90 — representing the vast majority of his current 2.9 million shareholding.

The announcement, published shortly before the end of trading on Tuesday, saw EOS shares crater 17% in less than an hour.

“The market reaction is everyone seeing the potential for another DroneShield here,” Merewether Capital co-founder and portfolio manager Luke Winchester told Capital Brief.