Electro Optic Systems (EOS), a company known for being a short sellers’ dream, is suddenly at the centre of a critical discussion about Australia’s global defence capability, thanks to its ownership of a satellite start-up offering military-grade communications.

Former chief of army and EOS chairman, Peter Leahy, says an EOS subsidiary called SpaceLink has the potential to be a critical part of the AUKUS security pact, but it needs more capital than can be supplied by EOS.