Capital Raising, page-12

Given we are talking about defence contracts any customer is going to require assurances that their vendor has the financial capacity to deliver.

Yesterdays press release did state that Australia's export agency EFIC provided a working capital facility and a finance guarantee to EOS in order to secure the $410m contract. It could be that this cap raising is therefore required to replace the EFIC assurances, or in order to secure further contracts at preferred bidder stage through investment in the supply chain and vendor payments.

We shall see when the details are released as to why the raise needed to executed in the timeframes. A raising at a premium however would be wholly justified here.