4.65m subscription agreement $11.9m secured de, page-4

Today from proactive investors.

(ASX: MST) has eliminated $11.9 million in secured debt and is preparing for non-lethal weapon and ammunition production with the strong backing of Luxinvest Capital Advisors.

The investor has shown a vote of confidence in the company, entering into subscription agreements for $4.6 million in new equity.

Metal Storm has also signed an agreement with majority noteholder Australian Special Opportunity Fund, an institutional investment fund managed by New York-based The Lind Partners to:

- Redeem $9 million of secured notes for $1.7 million cash;
- Convert $1.4 million of secured notes to shares; and
- Forgive a further $1.5 million of secured notes under an existing debt forgiveness deed.

Importantly, the company has materially improved its balance sheet with the elimination of debt and is now well funded to focus on and advance its MAUL non-lethal weapon program.

The deal increases working capital by $2.95 million following the secured note redemption.


http://www.proactiveinvestors.com.au/companies/news/27785/metal-storm-receives-46m-backing-from-european-investor-nears-non-lethal-weapon-production-27785.html