the australian

Metal Storm flags calling in administrators

The Australian November 30, 2009 10:37AM

THE end of the road may have come for weapons-maker Metal Storm, which this morning flagged the pending appointment of an administrator.

Brisbane-based Metal Storm said the first tranche of about $2.1 million in funding from proposed saviour Assure Fast Holdings that was due last Friday had not arrived and it may “consider” the appointment of an administrator should the funds not turn up.

Metal Storm then released a statement saying the funds are expected by close of business tomorrow.

In a prior update dated Friday but released to the Australian Securities Exchange today, the company said it had not received the funds but had been advised “verbally” from the sending bank in Hong Kong that they have instructions to remit the funds to Metal Storm.

Metal Storm today said: “AFHL has provided the company with a copy of the instructions they have provided to the remitting party. The company therefore anticipates funds will be received shortly.”


The funding is part of Assure’s $US35m ($38.2m) investment in Metal Storm, which has been plagued from day one by delays.

Metal Storm recently said it was monitoring its cash position daily and closely controlling its expenditure and resources.

The company in July said it had enough cash to last until the end of October and chief executive Lee Finniear said that, with November now nearing its end, it had been monitoring its cash position on a daily basis for “some time”.

Investors seemingly haven't lost faith, sending Metal Storm shares more than 10 per cent higher in early trade to to 2.1 cents.