Electro Optic Systems (EOS) shares surged over 14 per cent as trading resumed following a halt. The surge comes after the company refuted a report by short-seller Grizzly Research, dismissing its conclusions as misleading, manipulative, and pejorative. Shares in EOS climbed 14.1 per cent, recovering from an intraday low of $5.05 following the report’s release.
EOS has rejected the claims made by Grizzly Research, emphasising that the report was published without any prior contact with the company. EOS also noted that Grizzly holds a short position in EOS shares, suggesting a potential conflict of interest that may have influenced the report’s negative conclusions.
According to its website, Electro Optic Systems specialises in technology for space and defence applications. The company expressed concern that the Grizzly Research report has already significantly impacted its share price. EOS has engaged legal advisors in both Australia and Germany to explore all available legal options in response to the report and its consequences.
“EOS rejects the misleading, manipulatory and pejorative conclusions contained in the Grizzly report,” the company stated. “EOS is concerned that Grizzly may have acted unlawfully and breached corporations laws in Australia and Germany [where EOS trades on the Frankfurt Open Market]. EOS has directed legal advisors in Australia and Germany to consider all available legal remedies.”
