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Electro Optic Systems has released a statement addressing ASX concerns about a conditional high energy laser contract with Goldrone.
The ASX has reportedly advised EOS that it has formed the view that the December Announcement failed to adequately describe market sensitive information regarding the contract.
“At Goldrone's request, EOS did not name Goldrone as the counterparty to the Contract in the December Announcement. As an entity in the defence and security industry, EOS falls into the limited categories where ASX may be satisfied that a counterparty has a strong and legitimate reason not to be named in an announcement of a material contract, provided that there is a sufficiently detailed description to allow the market to assess the counterparty's standing and creditworthiness,” according to a statement published by EOS on March 12.
“EOS sought to meet this expectation with respect to the standing and creditworthiness of Goldrone by stating prominently in the December Announcement that completion of the Contract is subject to satisfaction of conditions including the payment by the customer of the initial deposit (US$18 million) and the customer procuring the issuance of a Letter of Credit for the remaining amount of the Contract. EOS took advice on its disclosure obligations before making its December Announcement.”
The ASX has reportedly assessed that the information in the December Announcement was not sufficiently detailed to meet the expectations of ASX.
“As a result of ASX’s concerns, ASX has directed EOS pursuant to Listing Rule 18.8(k) to review its continuous disclosure policy governing EOS’s compliance with Listing Rule 3.1 to ensure that it is in line with ASX's expectations with respect to the disclosure of market sensitive information,” the EOS statement said.
“EOS notes the concerns expressed by ASX about the December Announcement and takes these concerns seriously. EOS has acted promptly and, with the assistance of an external law firm, conducted this review and its updated continuous disclosure policy may be accessed on our website.”
