Electro Optic Systems raises $175M for MARSS acquisition

Electro Optic Systems (ASX:EOS) has announced a major capital raising initiative of up to $175 million to support growth opportunities and fund its recent acquisition of MARSS.

The capital-raising structure comprises a fully underwritten institutional placement targeting $150 million alongside a non-underwritten share purchase plan aiming to raise up to $25 million.

New fully paid ordinary shares under the placement will be issued at a fixed price of $8 per share.

The financial expansion follows a significant update regarding the MARSS transaction and a strengthened commercial outlook, particularly within the Middle East.

Driven by recent regional conflicts, MARSS has experienced a demonstrable surge in customer enquiries for its defence systems, with its NiDAR system performing exceptionally well.

MARSS secured new orders totalling €102 million from an existing Middle Eastern client, boosting its total order book to €135 million.

Subject to transaction completion, integrating MARSS’ order book will substantially bolster EOS’ existing $509 million order book, elevating the combined total to an illustrative $726 million.

Management confirmed that proceeds from the capital raising, combined with an existing secured term loan facility from Washington H. Soul Pattinson (ASX:SOL), will be utilised to fund the upfront consideration for the MARSS acquisition.