EOS - Electro Optic Systems Holdings

[galumay]

One Bart is one too many in my book!

 

[sptrawler]

Fred Bart. Phil Bart, brother. Phil Bart and Stan Howard, Directors National Textiles. Stan Howard. John Howard (ex-PM), brother.

From memory, Stan Howard was at the helm of Yates garden products, when they had problems around 2000. Did my dough on that one also.

 

[Purple XS2]

April has been an up and down month for Electro-Optic, and today's Appendix 4c quarterly is abit gloomy, reciting the disruptions of COVID-19, the effect of which look to be unsettling for some months to come.
https://www.asx.com.au/asxpdf/20200430/pdf/44hdtr4r305tb7.pdf
That being said, should it come to pass that May sees a brightening of future skies, EOS might just attact attention from investors wanting to get in ahead of the game.

Last close at $4.70.

 

[Dona Ferentes]

Probably a better 'defence spend' play

The Electro Optic Systems Hldg Ltd share price has rocketed 22% higher to $6.52. This follows an announcement by the defence-focused technology company that it has entered into contract negotiations with the Commonwealth of Australia for the acquisition of 251 Remote Weapon Stations and related materiel. This is part of the government’s $270 billion capability upgrade for the Australian Defence Force.

 

[Dona Ferentes]

Electro Optic Systems Holdings Ltd has achieved a major breakthrough in laser technology which significantly advances the global effort to mitigate space debris.

The innovation involves the use of a Guide Star Laser to allow high speed adaptive optics to form laser beams that can track and move space debris at lower altitudes and faster speeds than ever previously possible. This intellectual property has been developed by EOS in collaboration with the Space Environment Research Centre, and will now be commercialised and owned by EOS, with applications including space debris mitigation and high bandwidth satellite communications.

SERC's aims were to reduce the rate of space debris proliferation caused by space debris collisions, and to demonstrate the potential of ground-based lasers to manoeuvre space debris so that collisions can be prevented. By leveraging the substantial existing infrastructure, facilities and research momentum of its participants, SERC was able to achieve these aims within its $62 million budget and its mission was successfully completed as planned on 31 March 2021.

 

[JohnDe]

Is the EOS ship slowly sinking?

I can't believe that their SP has dropped for so long when there is so much potential in the current climate of world fear and investment in technology.

 

[galumay]

I can't believe that their SP has dropped for so long when there is so much potential in the current climate of world fear and investment in technology.

Potential doesnt drive share price! Have a look at the financials & you will understand the depressed price. Also the Bart factor looms large. That's a red flag for any business IMO. Always check the board & top 20 holders. I have a blacklist I check against them.

 

[JohnDe]

With Russian missiles launching everyday -

EOS, Nova Systems’ Sovereign Missile Alliance partners with Diehl Defence for guided munitions enterprise​

The Sovereign Missile Alliance, a joint venture between Electro Optic Systems and Nova Systems, has announced its intention to partner with guided weapons contractor Diehl Defence for the Sovereign Guided Weapons Enterprise.

Designed to provide sovereign solutions for missile and guided weapons manufacturing, the joint venture leverages the capabilities of both EOS and Nova Systems with a reported 1,000 employees and $500 million annual turnover.

Now, it has been announced that Diehl Defence would also support the enterprise with technology transfers to greater support the development of sovereign guided weapons capabilities. The agreement will be conducted on a non-exclusive basis.

“This collaboration with Diehl Defence will bring world-leading technology to Australia to enable this development to occur,” Dr Ben Greene, founder and group chief executive officer of EOS, said.

His comments were reflected by Nova Systems Group chief executive officer Jim McDowell, describing how the partnership will better benefit Australian industry and national security.

 

[JohnDe]

22.4% up today, must be a big announcement coming very soon.

Don't get excited yet, could easily fall as fast.

 

[Dona Ferentes]

22.4% up today, must be a big announcement coming very soon.

It was $10 before Covid appeared, so in the 2 years it has been a steady decline. And $1.60 was only a week ago

Don't get excited yet, could easily fall as fast.

the defence spend is only going to increase, though

 

[JohnDe]

It was $10 before Covid appeared, so in the 2 years it has been a steady decline. And $1.60 was only a week ago

the defence spend is only going to increase, though

Another good day.

I didn't know the company during the $10 days, I discovered them during the Covid crash and topped up during their super lows. This one is a medium term hold for me. though the continual price drop has got me thinking about a sell.

 

[galumay]

Be careful, management is the risk with this one, the Bart effect is poison for shareholders sooner or later!

 

[Belli]

Be careful, management is the risk with this one, the Bart effect is poison for shareholders sooner or later!

Ah, so you remember another company director of the same surname.

However, Mr Bart resigned as chair of EOS some time ago and is no longer on the Broad.

 

[JohnDe]

Can anyone tell me why pay $1.20 for a SPP when you can currently pick up the shares for between $0.975 - $1.01

Electro Optic Systems Holdings Limited – Share Purchase Plan On 29 June 2022, Electro Optic Systems Holdings Limited ACN 092 708 364 (ASX: EOS) (EOS or Company) announced to the Australian Securities Exchange (ASX) a proposed A$15 million placement of new fully paid ordinary shares in EOS (Shares) to institutional investors (Placement) at an issue price of A$1.20 per Share (Placement Price).

 

[galumay]

Bart & Dennis bailing should have been the red flag, if they couldn't wring anymore out of shareholders it was a clear sign the game was over.
So, no, no one can tell you why you should pay over the odds for this train wreck!

 

[JohnDe]

Well, looks like a spanner has been put into the works to make things interesting -

Form 603 Notice of initial substantial holder
- Electro Optic Systems Holdings Limited (ASX: EOS) (the Company)

Please find attached a Notice of initial substantial holder for the Company. Brickworks Limited currently holds 26.1% of the shares in Washington H. Soul Pattinson and Company Limited (ASX: SOL) which results in Brickworks Limited having a deemed relevant interest in the Company.

As provided for in the notice, Brickworks Limited will file further substantial holder notices only to the extent that there would be informational utility in doing so.

Yours faithfully

Brickworks Limited

 

[galumay]

Yep, I think it goes to zero if nothing happens, so the operating business sold off to SOL makes sense. A real and honest management team can likely run the business profitably.

 

[Dona Ferentes]

Well, looks like a spanner has been put into the works to make things interesting -

interesting, indeed. So if BKW have 26.1% of SOL, and SOL has, by announcement, 6.21% of EOS, then BKW would be close to or at 19.9% of EOS? And when new shares are issued under the SPP, then these percentages are likely to change again.

Which makes this from BKW clear to some:

Unless the substantial holder acquires a relevant interest in the Company in its own right or it ceases to have those deemed relevant interests, or there is a significant development that would provide material information to the market as contemplated in section 602 of the Corporations Act, the substantial holder does not intend to file further substantial holder notices in relation to the Company as these would be more confusing than informative.

EOS up and now trading around $1.09

Also, a lot of companies give a VWAP formula that can protect the downside of a SPP, following a placement. From EOS:

In particular, you should note the future market price of Shares is uncertain and may rise or fall. This means the price you pay for Shares under the SPP may be either higher or lower than the Share price as traded on ASX at the time the Shares are issued to you under the SPP, with the effect that the value of your investment in the Shares could rise or fall.

 

[galumay]

Article in the AFR on EOS today, things look terminal. BKW/SOL probably ends up with the bits of the business it wants and the rest goes to 0.

 

[Dona Ferentes]

Article in the AFR on EOS today, things look terminal. BKW/SOL probably ends up with the bits of the business it wants and the rest goes to 0.

Violins please.

Former chief of army and EOS chairman, Peter Leahy, says an EOS subsidiary called SpaceLink has the potential to be a critical part of the AUKUS security pact, but it needs more capital than can be supplied by EOS.

Leahy says there are good geopolitical reasons why the Australian government should step in to provide longer-term funding for SpaceLink, which needs up to $300 million to achieve its commercial goals.

“It allows for almost instantaneous global communications, which means you can move information securely and safely in large volumes.

“That means you can command globally dispersed operations which is something we’ve been trying to achieve for a long time".