Electro Optic Systems Holdings (ASX:EOS) said it has completed a fully underwritten institutional placement of about 18.8 million new fully paid ordinary shares at AU$8 per share, raising AU$150 million from existing and new institutional investors, according to a Wednesday Australian bourse filing.
The placement price represents a 9.3% discount to the last traded price of AU$8 on May 15, with the company also receiving a commitment from Generation 5 Holding and another defence-focused institutional investor to subscribe for a total of AU$40 million in shares at the same price under a strategic placement subject to shareholder approval, the filing added.
EOS is also undertaking a non-underwritten share purchase plan (SPP) targeting up to AU$25 million, providing eligible shareholders the opportunity to apply for up to AU$30,000 worth of new shares at the same price as that of the placement, the filing added.
Proceeds from the institutional placement, strategic placement, and SPP, together with a secured term loan facility from Washington H. Soul Pattinson will be used to fund the upfront payment for the MARSS acquisition and to pursue growth opportunities, it added.