Electro Optic Systems launches $175m raise to support MARSS takeover
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More news: Electro Optic Systems has launched a $175 million capital raise to fund an increase to its takeover price for counter-drone system developer MARSS Group, as announced on Friday.
The raise will comprise a fully underwritten $150 million institutional placement, and a non-underwritten share purchase plan to raise up to $25 million through new EOS shares issued at $8 per share.
EOS shares last closed at $8.82.
The counter-drone technology company said on Friday it had agreed with MARSS to amend the takeover terms, including an increase to the maximum earnout cap from €100 million ($226 million) to €140 million.
The new terms were negotiated after MARSS added $165 million to its order book this month.
EOS said it has also drawn $70 million from its secured loan facility provided by Soul Patts. Of that, $50 million will be used to fund the upfront cash consideration.
Proceeds from the capital raise will also be used to “pursue growth opportunities and execute on strategic initiatives”, it said.
Electro Optic Systems enters trading halt ahead of capital raise
The news: Defence manufacturer Electro Optic Systems (EOS) has entered a trading halt ahead of an equity raise consisting of an institutional placement and a share purchase plan.
The context: EOS has been trying to acquire counterdrone system developer MARSS Group, but on Friday agreed to increase the maximum earnout cap for the deal due to increased demand and recent contract wins at the acquisition target.
At the time, the company also announced it had drawn down $70 million from its loan facility from Soul Patts to fund a $50 million to fund the upfront cash consideration due on Friday.
Shares in EOS will resume trading at the earlier of the announcement or the commencement of trading on 20 May.
