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** Shares of Electro Optic Systems EOS.AX falls as much as 15.8% to A$5.050, resuming the downtrend after being on a halt since Friday

** EOS slips to its lowest point since December 12, 2025, and is set for its fourth session of consecutive losses -- if the trend holds

** Stock went on a trading halt on Friday after Grizzly Research released a report making various allegations pertaining to EOS

** EOS says that the report contains conclusions it considers inaccurate, and that it was released by Grizzly without any prior outreach to the company

** Also notes Grizzly’s disclosed short position and raises queries whether additional motives may underlie the report

** Flags potential concerns regarding Grizzly’s compliance with applicable corporations laws in Australia and Germany, where EOS is also listed, and has engaged legal advisers to review the matter and consider available options

** Over 6 million shares change hands, 2.2x the 30-day average

** YTD stock is down ~40%

(Reporting by Sameer Manekar and Kumar Tanishk in Bengaluru)

((Sameer.Manekar@thomsonreuters.com;))