EOS Shares Rally as Company Counts Short Seller Allegations
11.02.2026 - 05:02:04
Electro Optic Systems (EOS) has issued a detailed rebuttal to a critical report from short seller Grizzly Research, providing specific financial data in its defense. The market responded positively when trading resumed following a temporary suspension, with the stock posting a significant gain. The core of the dispute centers on contract validity and financial reporting practices.
Trading in EOS shares recommenced on Tuesday after being halted the previous week. The suspension was triggered by a Grizzly Research report published on Friday, which raised questions about certain contracts and the company's financial communications.
In its response, EOS addressed several key allegations. A central point of contention was a conditional contract with a South Korean customer valued at approximately 80 million US dollars. The company clarified that this agreement is subject to specific conditions and was therefore explicitly excluded from its reported secured order book.
EOS stated its secured order book stood at 459 million AUD as of December 31, 2025, a figure that does not include the disputed Korean contract.
Should investors sell immediately? Or is it worth buying EOS?
Regarding its financial health, EOS disclosed a cash position of 107 million AUD at the end of 2025. The defense technology group further emphasized it has no drawn debt and maintains access to an undrawn credit facility of 100 million AUD.
Acquisition Defense and Legal Action
The company also defended its acquisition of MARSS. EOS stated that its due diligence process confirmed historical revenues of about 243 million Euro for MARSS covering the period from 2020 to 2025, countering the short seller's characterization of the acquired firm's finances.
EOS labeled the Grizzly report as misleading, noting that Grizzly Research holds a short position and would profit from a declining share price. The company has engaged legal advisors in Australia and Germany to examine potential breaches of corporate law and explore options for legal recourse.
Market Performance Context
Despite Tuesday's recovery, the stock remains under significant pressure for the year. Shares closed Tuesday's session at 6.71 AUD, marking a daily gain of 11.83%. However, the stock's year-to-date performance stands at -36.44%. The company's market capitalization was reported at approximately 1.29 billion AUD.
Ad
EOS Stock: Buy or Sell?! New EOS Analysis from February 11 delivers the answer:
The latest EOS figures speak for themselves: Urgent action needed for EOS investors. Is it worth buying or should you sell? Find out what to do now in the current free analysis from February 11.
EOS: Buy or sell? Read more here...
