Asia
Update: Electro Optic Systems Secures AU$175 Million Slinger Counter-Drone Order, Enters JV With Generation 5; Shares Jump 13%
(Update to add stock movement in the headline and the sixth paragraph)Electro Optic Systems Holdings (ASX:EOS) said it has secured an order of about AU$175 million for its Slinger Counter-Drone remote weapon system (RWS) to be supplied to Generation 5 Holding (Gen5), with systems to be manufactured in Australia and the UAE and delivered during 2027 and 2028, according to a Friday Australian bourse filing.The company said the order includes the RWS, cannon, spares, training, and other supplies, intended to strengthen defence systems amid ongoing regional tensions in the Middle East,Gen5 is a wholly UAE-owned provider of defence equipment, technology, and services, headquartered in Abu Dhabi, the filing added.EOS and Gen5 have entered into a binding, conditional joint venture shareholders agreement to establish a 50/50 joint venture based in Abu Dhabi, covering the development and manufacturing of a next generation 200-300 kilowatt high energy laser weapon (HELW), the manufacturing of EOS's existing 100-150 kilowatt HELW in the UAE and other Middle East and North Africa countries, and the manufacturing of certain existing EOS remote weapon systems in the region, the filing added.Under the key terms, Gen5 is obligated to contribute $40 million of equity to the joint venture, with both parties to use reasonable endeavors to secure a minimum $250 million order within 12 months for the development of the 200-300 kilowatt HELW product family, subject to customary commercial terms, with the joint venture expected to start contributing to EOS results from 2027 or 2028, it added.Its shares jumped 13% in recent trading on Friday.
ASX:EOS