Why is the Electro Optic Systems share price frozen today?

The space, defence, and communications company is undergoing a capital raise.

| More on:
A man peers out from a high collared jacket with just his eyes and nose visible amid a swirling snowstorm.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • The Electro Optic Systems share price is frozen at its previous close of $1.54 this morning 
  • It comes as the company proposed a capital raise involving a placement and share purchase plan
  • Its shares are expected to return to trade upon the announcement of the placement's completion 

The Electro Optic Systems Holdings Ltd (ASX: EOS) share price has been put in the freezer this morning amid news of a proposed capital raise.

The Electro Optic Systems' shares will remain halted at $1.54 until the market hears more from the company.

Let's take a closer look at what the market might expect to hear from the space, defence, and communications stock.

Why is the Electro Optic Systems share price frozen?

Electro Optic Systems stock has been put on ice as the company looks to bolster its coffers.

It's said to be embarking on capital raising activities. The proposed capital raise is to incorporate an institutional placement and a share purchase plan.

The company believes its stock will return to trade upon the announcement of the placement's outcome.

However, if such an announcement isn't released by Thursday's open, the stock is expected to return to trade as normal.

The company has announced plenty of news this year. Its directed energy drone defence system was qualified, it received finance support from Export Finance Australia, and its subsidiary SpaceLink achieved notable breakthroughs in its communication satellite design.

Despite these developments, the Electro Optic Systems share price has tumbled 35% since the start of 2022. It's also currently 65% lower than it was this time last year.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Electro Optic Systems Holdings Limited. The Motley Fool Australia has recommended Electro Optic Systems Holdings Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Capital Raising

A man sits in a chair hunched over a laptop and covered head to toe in frozen icicles to represent Envirosuite's trading halt
Capital Raising

Up 102% in 2024, here's why this ASX All Ords stock is now frozen

Seize the day. This company is ready to cash in on its renewed image.

Read more »

A man slumps crankily over his morning coffee as it pours with rain outside.
Materials Shares

Why is this ASX 300 battery materials stock crashing 20% today?

Its shares are now down by 67% since this time last year.

Read more »

A man with a heavy facial hair growth and a comical look on his face holds his hands in a 'time out' gesture.
Energy Shares

Up 90% in a year, why is this ASX 300 uranium stock suddenly halted?

Here's why this high-flying stock is out of action today.

Read more »

A male investor wearing a blue shirt looks off to the side with a miffed look on his face as the share price declines.
Mergers & Acquisitions

Why are Metcash shares tumbling today?

This wholesaler has just received a $300 million cash injection.

Read more »

A man sitting at a computer is blown away by what he's seeing on the screen, hair and tie whooshing back as he screams argh in panic.
Materials Shares

Why is the Arafura share price sinking 17% today?

It has been a tough session for this rare earths stock. But why?

Read more »

Two happy pharmacists standing together in a pharmacy.
Capital Raising

Own Sigma shares? Everything you need to know about the 'transformational' $8.8b merger with Chemist Warehouse

Here's what you need to know about this mega merger.

Read more »

Close up of a sad young woman reading about declining share price on her phone.
Energy Shares

Why is the Boss Energy share price sinking 5% today?

This uranium share is raising funds. But why?

Read more »

a man in a suit holds up a hand and a stop sign at a roadblock positioned over a bitumen road .
Capital Raising

Why are Boss Energy shares in a trading halt?

This uranium share is raising funds. But why?

Read more »