The Electro Optic Systems Holdings Ltd (ASX: EOS) share price has been put in the freezer this morning amid news of a proposed capital raise.
The Electro Optic Systems’ shares will remain halted at $1.54 until the market hears more from the company.
Letâs take a closer look at what the market might expect to hear from the space, defence, and communications stock.
Why is the Electro Optic Systems share price frozen?
Electro Optic Systems stock has been put on ice as the company looks to bolster its coffers.
It’s said to be embarking on capital raising activities. The proposed capital raise is to incorporate an institutional placement and a share purchase plan.
The company believes its stock will return to trade upon the announcement of the placement’s outcome.
However, if such an announcement isn’t released by Thursday’s open, the stock is expected to return to trade as normal.
The company has announced plenty of news this year. Its directed energy drone defence system was qualified, it received finance support from Export Finance Australia, and its subsidiary SpaceLink achieved notable breakthroughs in its communication satellite design.
Despite these developments, the Electro Optic Systems share price has tumbled 35% since the start of 2022. Itâs also currently 65% lower than it was this time last year.
The post Why is the Electro Optic Systems share price frozen today? appeared first on The Motley Fool Australia.
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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Electro Optic Systems Holdings Limited. The Motley Fool Australia has recommended Electro Optic Systems Holdings Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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