US ACQUISITION FIRES UP METAL STORM

Written on the 25 November 2011

US ACQUISITION FIRES UP METAL STORM

A New York-based investment fund manager has invested millions of dollars in a Brisbane-based weapons company.

Advised by HopgoodGanim partner Michael Hansel, US-based Lind Partners acquired $13 million of secured convertible notes in ASX-listed Metal Storm.

The purchase allows Lind's Australian Special Opportunity Fund to assist with reorganising a broader capital restructure as holder of the notes.

“The Lind Partners invests across a broad range of industries and economic environments - and is looking at a number of strategic equity opportunities in Australia,” says Hansel.

Corrs Chambers Westgarth partner Stephanie Daveson advised Metal Storm on the deal and separately establishing a $900,000 convertible security with Lind.

“The transaction involved a significant cross border restructure of Metal Storm’s capital structure under very tight timelines – and will ultimately require three meetings: Two for shareholders and one for note-holders,” says Daveson.

“We have advised Metal Storm over many years. (We acted on) rights issues in 2006, 2010 and 2011 – and a complex restructure of existing convertible notes, which helped to significantly reduce the company’s ongoing interest payments.”

The agreement sees Lind invest a further $1 million in Metal Storm across several tranches in exchange for newly issued, unsecured convertible notes.

The notes can be converted to ordinary shares at daily volume average prices, but will not be listed on the ASX.

Lind managing director Jeff Easton says the deal might help the target shed some of its debt and recapitalise for further technology developments.

Metal Storm has developed lightweight, compact and non-mechanical firearms using computer-controlled electronic ignition with stacked projectiles. They have multiple barrels mounted together, allowing a range of munitions types to be deployed in a single, light-weight weapon system.

The investment’s final $200,000 tranche is subject to investor approval.


Latest News

INTEREST IN RETAIL PROPERTY SPIKES AS INTERNATIONAL BRANDS LOOK TO ROLL OUT IN AUSTRALIA

AN influx of international retail brands into Australia over the next five years are expected to push up demand for f...

MANTRA BOASTS OF SUCCESSFUL HOTEL INTEGRATION AS NET PROFIT GROWS 15 PER CENT

MANTRA Group (ASX:MTR) CEO Bob East has praised the performance of the company's new Honolulu Hotel as it posted ...

WHITEHAVEN TRIPLES EARNINGS, PAYS DOWN DEBT AFTER COAL PRICE TURNAROUND

THE HIGH coal price has allowed Whitehaven Coal to triple earnings and pay down a large portion of its debt in the fi...

BABY BUNTING BUOYED BY CLICKS AND BRICKS PERFORMANCE

BABY Bunting has grown sales 18.1 per cent to $135.1 million in the first half of FY17, sweetened by the opening o...

Related News

WHY EMPLOYEE-OWNED COMPANIES ARE BEATING ASX200 SHARE PRICES

EMPLOYEE-owned companies command a higher share price than their publicly listed peers, reaping a 17 per cent prem...

RISE OF THE MACHINES HAS WORKERS SWEATING

UP TO 3.8 million Australian workers are fearful their job may soon be terminated by a robot, a new survey has shown....

LESS TALK, MORE SMALL BUSINESS ACTION IN 2017

THE future growth and prosperity of Australian SMEs could be undermined if governments lose sight of the sector...

TEST DRIVE A POST GRAD AT BOND

THERE'S only one way to really move your career into the fast lane, says Bond University, and 'test driving...

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter