...so Finniear's true colours begin to shine - consumate salesman is all he is - just waiting for the VBIG commission check at the end of the day, and doesn't really give two hoots about the details, just the sale...
Metal Storm in the dark on mystery saviour
http://www.theaustralian.news.com.au/business/story/0,28124,26247172-643,00.html
Andrew Main | October 23, 2009
Article from: The Australian
THE Australian company that devises some of the most lethal small weapons in the world has been rescued by a mysterious British Virgin Islands company that will almost certainly end up with control.
But the management of Brisbane-based Metal Storm doesn't seem to know a lot about Assure Fast Holdings, or its chairman Robert Rivero. Assure Fast is planning to put a total of $US33million ($35.8m) into Metal Storm in a mixture of equity and debt.
Where is Mr Rivero based, we asked chief executive Lee Finniear.
"I'm not sure," he replied.
He said Metal Storm, which listed in 1999 at $3 and whose battered share price almost doubled yesterday from 2.6c to 5.1c, is currently developing a hand-held, three-round grenade launcher, a five-shot automatic shotgun that weighs less than 1kg, and a four-barrel automated grenade launcher that is being assessed by the US Marine Corps.
Asked whether Mr Rivero was Spanish or Filipino, Dr Finniear said that "you might say that but I couldn't possibly comment".
He said he and his colleagues had been asked to meet Mr Rivero in Hong Kong, where a deal was negotiated between Metal Storm, Assure Fast and its bank, The Royal Bank of Scotland.
"We have to be very careful and delicate with our new investor," Dr Finniear said, adding that he had no material on the investor that he was authorised to distribute.
Mr Rivero was quoted by a Metal Storm release as looking forward to helping develop marketing and sales in areas where he had strong contacts such as Europe, Vietnam, The Philippines and Hong Kong.
Metal Storm was founded by Brisbane inventor Terry O'Dwyer, who is now chairman, on the basis of a multi-barrel gun with a huge rate of fire based on bullets being triggered electrically to follow each other down the barrel.
The mystery company Assure Fast will start by subscribing $US1.925m for 110 million shares at just over 2c a share, with a further 890 million shares at a similar price plus a startling parcel of 100 million options for a total of $US15.57m.
With a current market capitalisation of about $36m and 748 million shares of issue, just the share issue alone will take Assure Fast's holding to more than the number of shares now on issue, never mind any conversion of the options.
Dr Finniear agreed that the deal would take Assure Fast "past 50 per cent" of the company's share register. Assure Fast also plans to lend $US17.5m to Metals Storm on terms that have not yet been finalised.
The options will be issued with a strike price of 6c and are exerciseable within three years.
.... the good ship MST - sailing from Australian shores soon...
good luck
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