Electro Optic Systems calls latest disclosure breach an ‘isolated incident’
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The news: Defence technology company Electro Optic Systems has called its late disclosure of a change in shareholding of chief executive Andreas Schwer an “isolated incident” in response to an ASX query letter.
The context: At the company’s annual general meeting on 19 May, shareholders approved the grant of 21,539 share rights and 80,413 share options to Schwer, which were subsequently issued to the CEO on 22 May.
EOS said on Monday that “it was the intention” of the company to lodge the relevant disclosure on that date. However, the disclosure was instead lodged on 1 July “due to an administrative oversight”.
It marks the latest in a run of compliance issues inside EOS, having been pinged by the ASX in April following share purchases by non-executive director Robert Nicholson a day before the company made a price sensitive contract announcement.
A month earlier, EOS triggered a major sell-off after Schwer announced plans to sell the vast majority of his shareholding to “construct a family home and pay family expenses”, including a divorce settlement.
The company is also facing a $4 million fine for breaching its continuous disclosure obligations by not disclosing a materially significant revenue decline in 2022.
What they said: “The company considers the lodgement outside the prescribed timeframe as an isolated incident and believes that the current arrangements between the company and its directors to ensure compliance with Listing Role 3.19B are adequate and are being enforced,” EOS said on Monday.
The source: ASX
