metal storm awaits delayed payment

03.11.2009 10:49 AM

Weapons developer Metal Storm Ltd has called a trading halt as it waits for a delayed payment from a foreign investor.

The Brisbane-based company was expecting a payment on Tuesday but it has been delayed due to a public holiday and inter-bank processes.

"Metal Storm seeks the trading halt to allow time for the expected receipt payment to be ascertained by the company given the differing time zones between the countries," it said in a statement.

Metal Storm said last month it had reached agreement with Assure Fast Holdings Ltd (AFHL) to issue one billion new fully paid shares and 100 million options in exchange for $US17.5 million ($A18.83 million).

If the equity issue received shareholder approval AFHL would also lend Metal Storm a further $US17.5 million, under terms yet to be finalised.

The equity issue was to occur in two tranches, with the first 110 million shares to be subscribed on November 3.

Metal Storm says the trading halt will last until either it makes an announcement or until the start of trading on Wednesday, which ever comes sooner.