EOS resolves dispute with lender WHSP

Electro Optic Systems Holdings (“EOS” or “the company”) has resolved the dispute with its lender, Washington H. Soul Pattinson (“WHSP”).

Background
EOS previously announced on 9 October 2023 that EOS had received a claim for payment of a $4.5 million fee within 7 days, from its primary lender WHSP. The fee claim was with respect to consent previously provided by WHSP for EOS to issue guarantees supporting an attractive, cash generative sale, announced on 13 June and 7 July 2023.

EOS announced that it had disputed the fee claim and was in commercial discussions with WHSP to review the matter, and to consider options to explore a mutually agreeable commercial outcome. As noted in subsequent announcements by EOS, as part of these discussions, WHSP agreed not to pursue collection of the disputed amount until 22 December 2023.

Update – 22 December 2023 – Amendment to Support Business Growth
EOS has finalised an agreement with WHSP regarding the fee claim and amended the debt facilities to support business growth.

The key terms of the agreement, which take the form of an amendment to the facilities provided to EOS by WHSP, require EOS to pay $4.5 million (inclusive of all fees and excluding GST) to WHSP in full and final settlement of the fee claim.

Under the amendment, WHSP has agreed to relax certain restrictions included in the WHSP facilities. The flexibility afforded by this relaxation is expected to allow EOS to take advantage of future business growth opportunities as they arise.

The amendment is conditional on approval by another finance provider to EOS. This is expected to be finalised during Q1 2024, although there is no guarantee that such approval will be secured. EOS expects to issue further announcements as required to comply with its continuous disclosure obligations.