The Electro Optic Systems Holdings Ltd (ASX: EOS) share price is trading deep in the red today.
At the time of writing, Electro Optic shares are trading 10% lower at $1.02 apiece. Earlier they sank as low as 99 cents — a new 52-week low for the company.
In broad market moves, the S&P/ASX 200 Industrials Index (ASX: XNJ) is down 0.33% on the day.
What's up with the Electro Optic share price?
The Electro Optic share price is tracking south again today, continuing a longer-term downtrend that started on 23 March.
Since then investors have pushed the stock from a high of $3.28. However, the most recent slip downward occurred in lockstep with an institutional placement the company completed yesterday.
The defence contractor advised it has received commitments from institutional investors to raise $15 million.
As TMF reported yesterday, the placement price of $1.20 "represents a 22.1% discount to Electro Optic Systems' last closing price on 27 June".
The company also told investors that several factors have impacted its H1 FY22 revenue. However, it still expected FY22 revenue to "be equal to or exceed FY21".
1H FY22 revenue has been impacted beyond typical seasonal factors due to two contract delays and the federal election in May impacting new projects, resulting in expected 1H FY22 EBIT loss of approximately A$45 million (unaudited) (A$15 million of this loss relating to SpaceLink).
Finally, Electro also noted yesterday that "recent volatility in capital markets" had lengthened the time of its ongoing strategic review.
Investors weren't impressed with the news yesterday, sending the Electro Optic share price crashing 26%, and selling pressure has rolled over into today's session.
They are so unimpressed that selling has occurred on a volume of 3.4 million shares today – around six times more than the four-week average.
In the last 12 months, the Electro Optic share price has sunk more than 76% into the red. It is also down by 57% this year to date.
