Electro Optic Systems has not yet provided financial security

Defense, space and communications maker Electro Optic Systems has again failed to strike a deal with major shareholder Washington H. Soul Pattinson that would secure its financial future.

The company, whose share price has fallen as it faces a massive need for capital, is negotiating with WHSP for a longer-term financing structure.

The Canberra-based company secured backing from WHSP which initially provided a $35m term loan facility and a $20m one-year working capital facility.

Negotiations then began with a loan maturity date set for October 4, but this was extended to October 7.

Today, EOS informed investors that the deadline has been extended again, but only until October 12.

EOS said in a statement, “The Company continues to work with WHSP on a longer-term financing structure for EOS.”

The funding was announced with the company’s first-half results, which saw the company report an operating loss of $98.9 million, including $54 million attributable to the impairment of the systems company’s assets. SpaceLink satellites.

WHSP is a diversified investment company with significant holdings in building materials group Brickworks, as well as extensive real estate interests.

The extent of the company’s problems can be seen in a tumble in the company’s stock price from a 2020 high of $10.50 to 51 cents today.

Further reading:
SECOND US DEFENSE R&D CONTRACT FOR SPACELINK
EOS CONTINUES ITS RESTRUCTURING WITH A FINANCING AGREEMENT

Image: Electro-optical systems