Electro Optic Systems yet to secure financial certainty

Defence, space and communications manufacturer Electro Optic Systems has again failed to come to an agreement with major shareholder Washington H. Soul Pattinson that would secure its financial future.

The company, whose share price has plunged as it faces a massive need for capital, is negotiating with WHSP a longer-term financing structure.

The Canberra company secured backing from WHSP which initially provided a $35 million term loan facility and a one-year, $20 million working capital facility.

Negotiations then began with a maturity date for the loan set at 4 October, but this was extended to 7 October

Today EOS told investors that the term had again been extended but only to 12 October.

EOS said in a statement: “The company continues to work with WHSP on a longer-term financing structure for EOS.”

That financing was announced with the company’s first half results which saw the company report an operating loss of $98.9 million, with $54 million of that attributable to the impairment of assets in satellite systems company SpaceLink.

WHSP is a diverse investment house with major shareholdings in building materials group Brickworks, but also extensive property interests.

The extent to the company’s problems can be seen in a fall in the company’s share price from a high of $10.50 in 2020 to 51 cents today.

Further Reading:
SECOND US DEFENCE R&D CONTRACT FOR SPACELINK
EOS CONTINUES RESTRUCTURE WITH FINANCING AGREEMENT

Picture: Electro Optic Systems