Defense Contractor EOS Counters Short-Seller Allegations and Announces Strategic Deal
12.02.2026 - 05:46:04
Australian defense technology firm Electro Optic Systems (EOS) has launched a public rebuttal against a critical report from short-seller Grizzly Research. The company labeled the findings as misleading and manipulative, while simultaneously revealing a new defense sector partnership.
EOS issued a detailed response to the short-seller's report, which was published last Friday. The company stated the document was "misleading, manipulative and pejorative" and had been released without any prior contact with EOS management. Following the publication, the company's share price experienced a significant decline.
In reaction to the market movement, EOS requested a trading halt. The firm stated this action was taken to ensure an orderly flow of information to the market. EOS also highlighted that Grizzly Research has disclosed a short position in its securities, meaning the firm stands to profit from a declining share price. EOS expressed concerns that the short-seller may have acted unlawfully and is now examining "all available legal options."
Should investors sell immediately? Or is it worth buying EOS?
New Defense Partnership Unveiled
Separate from the controversy, EOS announced a strategic collaboration with Turkish defense contractor Roketsan. The partnership will focus on pursuing opportunities in select markets for integrated counter-drone systems and force protection solutions designed to safeguard personnel and critical infrastructure.
Company Context and Forward Path
Management at EOS framed recent events within the context of a robustly growing global defense market. The company pointed to a restructuring initiative implemented since 2022, which it says has resulted in a stronger balance sheet and a recent increase in order intake.
Moving forward, EOS emphasized its commitment to fulfilling continuous disclosure obligations. The company intends to provide additional transparency to its shareholders in the wake of the short-seller report.
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