Mr. Market likes the news . 9% up this morning :

2A1415801_EOS.pdf

Peter Leahy has announced his decision to step down as a Director and Chair of the Board of Electro Optic Systems Holdings Limited (EOS or Company) (ASX: EOS) effective immediately. Peter Leahy AC has been a Director of EOS since 2008 and Chair of EOS since July 2021. He has seen the company through a particularly challenging time in its history and has repositioned the company for an exciting future. Peter has decided that now is an opportune time to step down.

The EOS Board has appointed Garry Hounsell in the role of independent Chair. (since January 2020), a member of Commencer Capital’s (formally Investec Emerging Companies) Investment Committee (since 2019) and Director and Chair of HiroBrands Limited (since December 2021).

Time will tell if good , bad or ugly .

Mr. Hounsell acquired 500,000 shares on market - good sign of confidence to start with . 2A1415968_EOS.pdf

At last , some good news :

• PETER LEAHY TO STEP DOWN AS CHAIR OF BOARD
• APPOINTED GARRY HOUNSELL IN ROLE OF INDEPENDENT CHAIR

Farewell, ex general ! Good intentions without business acumen to keep the mad professor Et Al from going on a spending spree and fat salaries without any cashflow , all funded by s/h and pie in the sky " pipeline " .

Hopefully , BG is next .

Defence and aerospace company Electro Optic Systems (EOS) has ventured into a financing agreement with major shareholder Washington H. Soul Pattinson and Company (WHSP) to support its restructuring efforts. 

According to EOS’ financial report for the first half of 2022, the company signed a financing agreement with WHSP to refinance an existing $35 million loan.  

The agreement also provided an additional $20 million working capital facility to support the restructuring of EOS’ core defense and space unit.

EOS’s financial report outlined an operating loss after tax of $98.9 million for the first half of 2022. 

A significant component of the figure, amounting to $54 million, has been attributed to the impairment of assets and onerous contracts held in its US-based satellite systems subsidiary SpaceLink Corporation. 

Furthermore, the company saw several executive shifts and executed organisational restructuring to enable a more focused strategy. 

EOS said it is continuously exploring opportunities to realise value from the SpaceLink assets and remains and is in active negotiations with potential partners and purchasers. 

The company noted that it is in the process of making significant changes in H2 2022 to reverse the earnings before interest and taxes, and cash flow momentum in order to establish a strong platform for 2023. 

Among its plans, EOS said it seeks to prioritise existing business lines that are profitable and respond to customer procurement activity, instead of anticipating requirements through customer planning documents. 

EOS added that it executed contract changes to streamline the invoicing and payment processes, which is expected to result in a recovery in the company’s cash position in H2 2022.

https://www.australianmanufacturing.com.au/eos-secures-financing-to-back-restructuring-efforts/

In summary :

Spacelink is a complete flop ;

Incompetent management with no commercial acumen

Inconsistent decision making processes , overblown management structure for the company size ;

WHSP has refinanced the $35m Roadnight debt facility and extended the current maturity date to 26 September 2022. The Company expects to seek further extensions from WHSP as part of a staged refinancing of the Company (although, there can be no guarantee that such extensions will be obtained). $15m in initial committed facility, subject to conditions precedent, plus a further $5m at the discretion of WHSP - Interest is at 15% per annum. 

Redundancies and restructure is imminent and necessary . The board , Ben Greene Et Al ( dead wood ) need to go . I reckon this is the biggest test for EOS . So far , the company's board demonstrated a total luck of integrity and ethics . I am skeptical that it would improve unless the drastic measures are implemented .

To conclude - I feel sorry for all investors ( including myself ) . The only remedy for a short term survival of the company is to wipe the board and incompetent management , to repay the loan , and to invoice the products to fix the cashflow issues ( supposedly $130 million of products that the customer suppose to pay for ).

Electro Optic Systems (EOS) has announced the appointment of Dr Andreas Schwer as Chief Executive Officer, effective 1 August 2022. 

The appointment comes following the company’s announcement last week that Dr Ben Greene, EOS’ founder and long-time CEO, would be stepping down from the role after 36 years of service. Dr Greene will now move into the role of Head of Innovation.

The company says Dr Schwer will take the helm at a 'pivotal time' as EOS finalises the outcome of its Strategic Review. His appointment will 'provide the leadership required to “reset” the company' as it seeks to optimise shareholder value over the long term, EOS says.

Dr Schwer has an extensive understanding of the company’s global operations, having acted, most recently, as President of EOS EMEA (Europe, Middle East and Africa) for two years, during which time he oversaw the expansion of the company’s activities in NATO and Middle Eastern markets.

Dr Schwer has had a long and varied executive career in the defence, manufacturing and space domains. His previous experience includes senior positions in public sector defence industry, at the German defence company Rheinmetall AG, the US global equipment manufacturer Manitowoc Company, Airbus Group and the European Space Agency. He is a board member and recently retired Non-Executive Chairman of Australia-based company Titomic. Among his qualifications, he holds a PhD in the field of system modelling and numerical optimisation. 

“Dr Schwer’s commercial acumen, experience across the defence and space sectors, and extensive international experience ideally position him to lead the company as we seek to improve our go-to-market capability across Asia, Europe and the US," Peter Leahy, Chair of EOS, said. "The Board believes he has the right combination of experience, capabilities and attributes to lead EOS as we prioritise growth in our defence and space businesses.”

Dr Schwer will be based in Canberra, Australia where EOS is headquartered.

https://www.australiandefence.com.au/news/eos-appoints-new-ceo#:~:text=Electro%20Optic%20Systems%20(EOS)%20has,after%2036%20years%20of%20service.

Will be interesting to see how long this guy will survive . Not many options for someone to be his shoes - either a poppet of Ben Greene , nice fat salary and parts the way or tries to turn around this business without much success and leaves after a short period of time.

16/03/22

22% in one day and no news sounds like an insider leaking some info to the close cycle . Hanhwa project is coming ...

My prediction it'll be a drop of 5-6% tomorrow if no news , and then another bull run on announcement.

17/03/22

A gain of more than 7% around midday , I was obviously wrong .