Electro Optic Systems shares lift following $175m counterdrone order, UAE JV
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The news: Electro Optic Systems (EOS) has received an USD124 million ($175 million) order for its Slinger counterdrone system from United Arab Emirates defence equipment business Gen5.
EOS has also entered a binding, conditional agreement to form a joint venture with Gen5 for the development, manufacture and global distribution of high energy laser weapons.
The numbers: At 12:43pm AEST, shares in EOS had lifted 14.9% to $10.73 and were up 284.6% over the last 12 months.
The company entered a trading halt on Thursday.
The context: The systems will be manufactured in Australia and the UAE. Delivery is expected in 2027 and 2028.
Gen5 has also subscribed for $30 million worth of EOS shares through its strategic placement. This is subject to a shareholder vote at EOS’ extraordinary general meeting on 26 June.
The joint venture will involve the manufacturing and distribution of existing high energy laser weapon products in the UAE “and certain other Middle East and North Africa [MENA] countries” as well as the manufacture and distribution of existing remote weapon systems in the UAE and certain other MENA countries.
However, EOS caveated that “there is no guarantee that the key steps to establish the JV will be completed”.
The source: ASX
