andrew doyle

One good deed leads to another for 'rescuer'
IAN MCILWRAITH
January 8, 2010 WEAPONS maker Metal Storm's unsung financial hero of the past weeks has emerged as one of the company's long-term investors, who punted that lending the company some interim cash would allow it to survive long enough to find a major lender.

Andrew Doyle, an Australian expatriate who runs his own investment and markets advisory business in Singapore, signed an agreement with the embattled company a week before Christmas to supply it with $500,000.

At that stage, Metal Storm was on the brink of insolvency.

Cayman Islands group Assure Fast Holdings had repeatedly failed to produce the first $2.1 million of a promised $37.5 million investment, and Metal Storm's weapons delivery technology was in danger of being placed in the hands of administrators and sold to the highest bidder.

While Metal Storm chairman Terry O'Dwyer and fellow board members were negotiating a replacement deal with New York-based hedge fund group Global Emerging Markets, Mr Doyle offered to step in with what was effectively bridging finance, in exchange for shares.

Mr Doyle handed over $300,000 initially. The balance was due this week.

Overall, Mr Doyle has received 31.25 million shares in Metal Storm, all issued at 1.6 each.

He told BusinessDay he was not still in possession of them all, having taken advantage of the higher stock prices earlier this week when Metal Storm formalised a $20 million line of credit deal with GEM.

It is believed that Mr Doyle sold some of his stock at the peak of 3, which means he effectively doubled his money on that stock.

On yesterday's closing price of 2.5, the shares Mr Doyle received would be worth $280,000 more than he paid.

He is believed to have re-invested some of his return in the company's listed convertible notes, where he was already the second-largest investor with over a million.

Source: The Age