Dallas, Texas--(Newsfile Corp. - November 22, 2024) - Electro Optics Systems Holdings Ltd (ASX: EOS): Stonegate Capital Partners updates their coverage on Electro Optics Systems Holdings Ltd (ASX: EOS). In November of 2024 EOS announced the signing of a binding agreement to divest the Company's EM Solutions segment for an enterprise value of $144.0M to Cohort, a UK based company. We note that this transaction triggers the repayment of its current debt facility. We estimate that following the closing of this transaction, which is expected to be completed within the next six months, the Company will have ~$135.0M in cash on the balance sheet and zero debt outstanding. We view this transaction as accretive to the Company's gross margin and expect that it will provide EOS with sufficient liquidity to pursue growth objectives closer to the Company's core operations.

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Key Takeaways:

• In November, EOS announced a binding agreement to divest its EM Solutions segment for $144.0M.
• Divestiture is expected to add ~$80M in the Company's cash balance.
• Post-divestiture, EOS will have zero debt outstanding.

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About Stonegate

Stonegate Capital Partners is a leading capital markets advisory firm providing investor relations, equity research, and institutional investor outreach services for public companies. Our affiliate, Stonegate Capital Markets (member FINRA) provides a full spectrum of investment banking services for public and private companies.

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