Electro Optic Systems Holdings Limited (ASX:EOS) has responded to a report released by Grizzly Research LLC on February 6, 2026, addressing various allegations pertaining to the company. EOS, which specialises in technology for weapon systems optimisation and integration, as well as ISR (Intelligence, Surveillance and Reconnaissance) and C4 systems for land warfare, requested a trading halt to ensure informed trading. The company firmly rejects the misleading and manipulative conclusions presented in the Grizzly Report, asserting that it was published without any prior engagement with EOS.
EOS notes that Grizzly Research has disclosed a short position in EOS securities, indicating a potential profit motive from a decline in EOS’ share price. The company also questions whether there may be other motives of the Grizzly Report considering the highly competitive nature of the global defence sector. EOS further highlights that Grizzly has faced legal action, including defamation suits, from other companies over allegations deemed false and harmful. EOS is concerned that Grizzly may have acted unlawfully and breached corporations laws in Australia and Germany.
Despite the misleading nature of the report, EOS has addressed the principal allegations to protect its shareholders. The company acknowledges the strong growth in the global defence industry and highlights its successful turnaround since 2022, including strengthening its balance sheet and bolstering sales capabilities. Recent months have seen increased order intake for EOS. The company’s share price increased significantly between January 2025 and January 2026 due to factors including changes in global defence spending, technology advancements, company announcements, and macroeconomic conditions.
EOS emphasises its compliance with continuous disclosure obligations and its commitment to transparency with shareholders. The company draws attention to Grizzly Research’s disclosed conflict of interest, urging shareholders to be aware of Grizzly’s financial incentive for EOS’ share price to decline. EOS also considers whether other parties, including competitors, may have been involved in the preparation or dissemination of the Grizzly Report. The company is considering all available legal remedies and advises shareholders that investing in EOS shares involves risk, as detailed in its Annual Report.
