The S&P/ASX 200 Index (ASX: XJO) is having a difficult finish to the week. In afternoon trade, the benchmark index is down 1.9% to 8,721.8 points.
Four ASX shares that are falling more than most today are listed below. Here's why they are dropping:
Electro Optic Systems Holdings Ltd (ASX: EOS)
The EOS share price was down 16% to $6.03 before being placed in a trading halt. This has been driven by a short seller report from Grizzly Research. The short seller has concerns over a Korean contract announcement. It said: "We find the statements that EOS made in the investor call dedicated to the new Korean contract announcements aggressively misleading, and sometimes bordering on outright lies." It also has doubts over a recent acquisition, adding: "Our research in the acquisition of MARSS by EOS in January 2026 uncovers a multitude of issues. We believe management has lied about past revenues and is misrepresenting the economic opportunity of this acquisition."
Lotus Resources Ltd (ASX: LOT)
The Lotus Resources share price is down 27% to $2.11. This morning, this uranium producer announced the completion of a $76 million institutional placement. These funds are being raised at $2.15 per new share, which represents a 25% discount to its last close price. The proceeds will be used to support the execution and completion of the acid plant and grid connection projects, which will optimise operating costs.
REA Group Ltd (ASX: REA)
The REA Group share price is down 9% to $165.58. Investors have been selling the property listings company's shares after its half-year result fell a touch short of expectations. REA posted a 5% increase in revenue to $916 million and a 9% lift in net profit after tax to $341 million. This was driven by a 14% increase in yield, partially offset by a 6% decline in national listings.
Web Travel Group Ltd (ASX: WEB)
The Web Travel share price is down 29% to $2.98. This follows news that the Special Delegation of the Balearic Islands of the Spanish Tax Agency has commenced an audit of Web Travel's Spanish subsidiary. It notes that the audit is reviewing the direct taxes paid and owed between April 2021 to March 2024, as well as indirect taxes for the period between January 2022 to December 2025. Whether this warrants such a sharp decline, time will tell.
