mtsxy, page-2

Tuesday 24 April

Metal Storm (ASX: MST), with its recent debt restructure and capital injection, is powering ahead with a new strategy to reach positive cash flow.

Last week the company announced a nearly A$5 million capital injection from European investor Luxinvest Capital Advisors, as well as an agreement to write-off $11.9 million, or over 80%, of its secured convertible note debt.

Metal Storm has outlined three major steps in its strategy:

- Restructure its capital base and acquire funds for product commercialisation;
- Undertake initial production for user field trials and product compliance evaluation; and
- Enter full production and sell internationally in volume.

The first product the company is bringing to market is its MAUL™ ultra-light 12 gauge accessory launcher, together with non-lethal, TASER® and door breaching ammunition.

MAUL™ is the ultimate accessory weapon to provide officers with a choice of non-lethal responses instead of using lethal force.

Metal Storm has already built initial demonstration units, with more than 60 U.S. agencies requesting user trials or further demonstrations.

Around July, once the company has received funding, Metal Storm will complete integration and begin building up to 50 MAUL™ weapons plus ammunition in a low rate initial production run.

http://www.proactiveinvestors.com.au/companies/news/28042/metal-storm-marches-towards-non-lethal-weapon-production-with-new-strategy--28042.html