WEAPONS-MAKER DROPS A BOMB

WEAPONS-MAKER DROPS A BOMB

ASX-LISTED Metal Storm (MST) has entered voluntary administration with debts exceeding $11.9 million.

The decision came less than a fortnight after the Darra firearm-maker secured an equivalent $1.43 million engineering-services contract with military-defence contractor Colt Canada.

Adam Shepard and Adam Farnsworth, of Dean-Willcocks Shepard Recovery and Strategy (DWSRS), have been appointed as administrators.

MST had negotiated an inter-conditional umbrella deed with Australian Special Opportunity Fund (ASOF) and Luxinvest Capital Advisors (LCA) that was hoped to eliminate debt and provide $2.95 million in working capital.

However, ASOF cancelled the deed claiming LCA did not fulfil its end of a related subscription agreement.

In the absence of the deed and an alternative suitor, MST expressed doubt over its chances of finding the necessary sources of funding to continue operating. However, the company reveals DWSRS is looking to reach a positive outcome.

“The administrators are now in control of MST and will work with all stakeholders including employees, note holders, other creditors and shareholders in an attempt to restructure the company or sell it as going concern,” says the company in a written statement.

MST shares last traded at 0.1 cents per unit.

Enjoyed this article?

Don't miss out on the knowledge and insights to be gained from our daily news and features.

Subscribe today to unlock unlimited access to in-depth business coverage, expert analysis, and exclusive content across all devices.

Support independent journalism and stay informed with stories that matter to you.

Subscribe now and get 50% off your first year!

Four time-saving tips for automating your investment portfolio
Partner Content
In today's fast-paced investment landscape, time is a valuable commodity. Fortunately, w...
Etoro
Advertisement

Related Stories

“Not our desired outcome”: Telix withdraws from $300m Nasdaq IPO

“Not our desired outcome”: Telix withdraws from $300m Nasdaq IPO

Telix Pharmaceuticals (ASX: TLX), one of the nation’s largest...

CommBank joins new ‘intelligence loop’ to combat SMS phishing scams

CommBank joins new ‘intelligence loop’ to combat SMS phishing scams

In an effort to reduce the number of SMS phishing scam victims...

Stralis Aircraft secures funding to make commercial hydrogen planes a reality

Stralis Aircraft secures funding to make commercial hydrogen planes a reality

Brisbane-based Stralis Aircraft has become one step closer to its a...

A year after the PwC scandal, the furore is gone – as well as the appetite for structural change

A year after the PwC scandal, the furore is gone – as well as the appetite for structural change

It was a scandal that rocked the shaky foundations of Australia&rsq...