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MinterEllison advised EOS on its capital raising as the effects of COVID-19 set in
In a textbook example of the responsiveness of Australia’s equity capital markets to crisis, Electro Optic Systems Holdings Limited (ASX: EOS) has announced an institutional placement of A$134 million.
MinterEllison advised on the capital raising, which aims to enhance EOS' liquidity which has been impacted as a result of COVID-19, and continue to fund ongoing growth for the company. In addition to the placement, the capital raising involves an A$10 million share purchase plan (SPP).
Daniel Scotti, MinterEllison Equity Capital Partner said: “This transaction is part of the first wave of COVID-19-related capital raises. This deal, along with others we have worked on, demonstrates that listed companies are able to rapidly access emergency capital under the Australian capital raising regime. We expect to see more of these types of transactions.”
Mr Scotti said he and his team members were delighted to have assisted longstanding client EOS, with a capital raising that will see it maintain its growth trajectory despite the difficulties associated with COVID-19.
“Notably, the transaction utilises the additional temporary placement capacity that ASX has made available to assist listed entities during the crisis, and involved obtaining novel ASIC relief, allowing EOS to offer $30,000 worth of shares to all of its shareholders, notwithstanding that they may have participated in an SPP in the last 12 months.”
He said the placement was a positive reflection of the responsiveness of Australia’s capital raising regime.
EOS has undertaken a fully underwritten institutional Placement of new fully paid ordinary shares in the Company (“New Shares”) to eligible institutional investors.
The raising of $134 million is via a fully underwritten institutional placement of new fully paid ordinary shares to fund working capital for inventory expansion, investments to maintain growth and additional cash liquidity. The transaction also involved obtaining novel ASIC relief, allowing EOS to offer $30,000 worth of shares to all of its shareholders via a share purchase plan (SPP).
No shareholder approval is required for the issue of New Shares under the Placement or SPP.
The Placement is fully underwritten by Citigroup Global Markets Australia Pty Limited.
EOS is an Australian technology company that operates in the Space and Defence Markets. EOS focuses on development, manufacture and sale of telescopes and dome enclosures, laser satellite tracking systems and the manufacture of electro optic fire control systems.
I am an experienced corporate lawyer, focused on capital markets and mergers and acquisitions (M&A). My expertise is in initial public offerings (including dual tracks and dual listings), placements, rights and entitlement offers, secondary offers, and convertible and corporate bond offers.
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