Weapons maker Metal Storm takes off as Assure Fast aid begins to...

Weapons maker Metal Storm takes off as Assure Fast aid begins to flow CITY BEAT: Michael Bennet From: The Australian November 06, 2009 2:15PM Increase Text

IT seems mystery investor Robert Rivero is indeed alive and well - Metal Storm today said it has signed off on a $US17.5m unsecured loan as part of its funding package, which is backed by Mr Rivero's Assure Fast Holdings.
The news, along with a new contract to build some deadly-sounding semi-automatic shotguns, sent Metal Storm’s share price 25 per cent higher before to 4 cents.



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Metal Storm had said on Wednesday that a cyclone and bank holiday in Mr Rivero’s base of Manila had caused the delay of the loan, because Mr Rivero’s signature was an annoying requirement.

The unfortunate turn of events also caused the first equity tranche of $2m - part of the $US33 million ($35.8m) Assure is planning to put into the company - to be held up.

But the Brisbane-based company today assured investors it has got Mr Rivero’s prized signature and the loan is on its way (subject to approval from existing unsecured noteholders, of course).

There was no word on the equity, but Metal Storm did reveal a contract from Canada to purchase three MAULs.

What is a MAUL you might ask?

Metal Storm describes it as: “A small, 12-gauge, 5-shot semiautomatic shotgun weighing just 800gm that can be underslung on an assault rifle, fired standalone with a shoulder stock, or as a pistol.”

Shares of Metal Storm cooled to 3.3 cents by early afternoon.