Electro Optic Systems shares plunge 15% on CEO share selldown
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The news: Shares in Electro Optic Systems tanked more than 15% in afternoon trade after the counter-drone company announced chief executive Andreas Schwer will sell up to 2.5 million shares, or around $26.8 million based on the stock’s last closing price.
The context: The move will see Schwer sell the majority of his 2.9 million shares. EOS said the disposal is intended to allow him to “construct a family home and pay family expenses”, including a divorce settlement.
The company also said its chief financial and operating officer Clive Cuthell, and other members of the counter-drone company’s management team, are expected to dispose of “some or all” of their shareholdings “in the near term”
EOS said both Schwer and Cuthell joined the company in August 2022 and September 2022 respectively and have not sold any shares or interests to date.
The company published a minimum shareholding policy on 30 December, requiring Schwer to hold at least four times his fixed annual salary in EOS shares, equivalent to a minimum holding of 289,646 shares based on the last closing share price of $10.72.
Cuthell is required to hold a minimum interest of three times his annual salary, equivalent to 194,076 shares.
The stock, which has surged more than 600% over the last 12 months, slumped 16% to $9 at 4pm AEDT.
The source: ASX
