Defence, space and communications group Electro Optic Systems (ASX: EOS) has completed the raising of $68 million in a placement to institutional investors.
The capital raising was undertaken to support EOS’s forecast earnings which have been revised upwards on a strong order book and the establishment of a new space communications division.
EOS group CEO Ben Greene said the placement was well supported by existing institutional investors and attracted new institutions to the share register.
Greene said: “We are pleased to have secured the funding required to support our upgraded FY2020 EBIT guidance and to fund working capital requirements and ongoing growth initiatives.”
The company will also conduct a rights issue to eligible shareholders to raise up to an additional $10 million.
In November EOS took over EM Solutions and established its new communications business.
In June EOS was added to a shortlist of defence companies vying to supply a new turret (pictured) to upgrade the US Army’s Stryker armoured vehicle. The turret was designed by EOS and Israel’s Elbit Systems.
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