Electro Optic Systems shares fall after $150m placement

The news: Shares in Electro Optic Systems (EOS) fell in afternoon trade after the counter drone systems company completed its $150 million institutional placement.

The numbers: Shares had fallen 9.81% to $7.95 at 1:25pm AEST.

The placement was completed at a price of $8 per new share, with the settlement expected to occur on 22 May and normal trading on the ASX to commence on 25 May.

The context: EOS said that the proceeds from the placement and the company’s proposed share purchase plan, alongside a secured term loan facility provided by Washington H Soul Pattinson will be used to fund the MARSS acquisition and boost its balance sheet.

Following the completion of the MARRS transaction and broader capital raising, the company projects its pro-forma net cash balance to sit at approximately $235 million.