Sparks - Electro Optic Systems

Electro Optic Systems (EOS) has announced that it has launched a capital raise of up to A$175m via a fully underwritten A$150m institutional placement and a non-underwritten share purchase plan of up to A$25m. The placement price is A$8.00 per share, representing c 9.7% of EOS’s current issued capital and a 9.3% discount to the A$8.82 closing price on 18 May 2026. Proceeds from the capital raise will be used in conjunction with a loan facility to fund the upfront consideration of the MARSS acquisition, execute on strategic initiatives, increase balance sheet flexibility to pursue growth opportunities, provide working capital flexibility, accelerate commercialisation of new products and pay transaction costs. Following completion of the acquisition and capital raising, EOS is expected to have a pro-forma net cash balance of c A$195m. The capital raising follows the 15 May 2026 announcement that included certain amendments to the transaction terms for the acquisition of the assets of the MARSS group business as previously announced on 12 January 2026. The amendments have been driven by factors including additional contracted orders and a strengthening outlook for MARSS.

EOS provided a short trading update stating that the geopolitical backdrop remains supportive for demand. The company has had strong engagement from customers, including growing enquiries for counter-drone solutions. EOS has seen significant contract wins in 2026 including an A$60m counter-drone order in March 2026 and a total of A$170m new C2 counter drone contracts for MARSS.  About 60–80% of the unconditional illustrative order book of A$726m is expected to convert to revenue in 2026 and 2027. EOS’s pipeline of potential future orders continues to develop, presenting an opportunity for future order book growth.

For the full announcements please see EOS’s ASX announcement’s page here.