EOS pinged by ASX for director trading ahead of price sensitive announcement
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The news: Electro Optic Systems (EOS) has defended a director’s purchase of shares ahead of a price sensitive contract announcement, stating the director has confirmed he was not in possession of inside information.
The context: The trade was a day ahead of a price sensitive announcement on 31 March relating to two US contracts worth around $17 million and an update to the conditional Korean high energy laser contract previously announced.
EOS said Nicholson made the trade in an open trading window under the company’s trading policy.
Approval was granted on the basis that “at the time the approval was given each of the Chair of the Board, the Chair of the ARC [audit and risk committee] and CFO were not aware that the announcement would be made”, EOS told the exchange.
The ASX issued a securities trading query to EOS on 2 April, which asked a series of questions about an on-market purchase of shares made by non-executive director Robert Nicholson on 30 March.
Nicholson made a request to trade on 18 March and it was granted “in accordance with necessary requirements”. The approval subsequently expired on 30 March and Nicholson sought an extension.
The extension was approved by both the EOS chair and chief financial officer. It was also approved by the EOS ARC chair so long as the trade was completed prior to the closure of the trading window at close of business, which Nicholson compiled with.
EOS also confirmed it is in compliance with its continuous disclosure obligations.
The source: ASX
