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EOS Signs High Energy Laser Weapon Deal

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ELECTRO Optic Systems (EOS) Holdings Limited today signed a binding conditional agreement with a customer in South Korea with a total value of US$80 million

If the conditions are satisfied, the Contract would involve:

  • Manufacture and sale of a 100kW High Energy Laser Weapon
  • Establishment of a joint venture between EOS and the customer to develop and supply the Korean market with 100kW High Energy Laser Weapons (“Korean Joint Venture”) on terms to be agreed
  • Licencing of intellectual property relating to 100kW High Energy Laser Weapons for the Korean market to the Korean Joint Venture

Key Terms and Conditions of the Contract

The Contract requires production and delivery of the High Energy Laser Weapon. The Product will be manufactured at EOS’ new Laser Weapon Manufacturing Facility in Singapore.

The total amount payable to EOS under the Contract is US$80 million. The conditions of the Contract include the payment by the customer of the initial deposit (US$18 million), the customer procuring the issuance of a Letter of Credit for the remaining amount of the contract, and the customer inspecting and being satisfied with EOS’ Singapore Facility. The customer expects these to be completed prior to 31 January 2026.

The Contract is otherwise subject to customary terms including milestone payments for the balance of the contract income, and full refund entitlements for payments made in the event of Product non-performance. Subject to satisfaction of the conditions, the Contract is expected to be fulfilled after scheduled delivery of the High Energy Laser Weapon to South Korea at the end of 2027, and subsequent demonstrations.

Under the Contract, and subject to satisfaction of the conditions and obtaining relevant regulatory approvals, EOS is obligated to provide a licence for the Korean market to the Joint Venture, for intellectual property relating to the 100kW High Energy Laser Weapon. The consideration due under the Contract is payable after establishment of the Korean Joint Venture and achievement of Product demonstration performance milestones.