Metal Storm Confirms All June 30 Milestones Have Been Achieved
Monday July 2, 1:55 am ET
ARLINGTON, VA--(MARKET WIRE)--Jul 2, 2007 -- Metal Storm Limited (NasdaqCM:MTSX - News) and (ASX:MST.AX - News).
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On July 28, 2006 Metal Storm announced a fully underwritten Renounceable Rights Issue. In the Issue Prospectus the Company explained its product development programs, and, importantly, set clear and specific goals to have completed fully functional prototypes of its Redback™ and 3GL weapons and associated 40mm ammunition by no later than June 30, 2007. The Company also set the goal to have $AUD19.5M in cash on June 30, 2007. These goals took the form of binding covenants between the Company and holders of the convertible notes offered in the Renounceable Rights Issue.
On June 21, 2007, Metal Storm advised the market that it had achieved the goals relating to fully functional ammunition systems and weapons prototypes.
The Company is pleased to advise that Mr. Mike Hannan, the independent expert appointed by the Trustee to assess compliance, has now delivered his full report to the Trustee in which he confirms the success of Metal Storm meeting the covenant.
In regard to the cash covenant, the Company is also pleased to confirm that on June 30, 2007 the Company held a cash balance of $AUD20.7M. This is significantly higher than the $AUD19.5M required, and is a strong reflection on the focus and diligence with which the Company has been managing its expenditure.
"These achievements show that Metal Storm has the ability to set challenging, measurable goals and achieve them on time and within budget," said Lee Finniear, CEO. "We will continue this disciplined approach as we take our weapons systems to full commercialization."
The Metal Storm test firing program in Singapore is now successfully complete. The engineering team has commenced the analysis of the extensive ballistic data, high speed and conventional high definition video captured during the tests. The Company looks forward to releasing video and further information on the test firing results as soon as data and imagery is collated and approved.
Notes:
Metal Storm's Australian Stock Exchange trading code: MST
Metal Storm's NASDAQ Small Cap ticker symbol: MTSX
About Metal Storm
Metal Storm Limited is a multi-national defence technology company engaged in the development of electronically initiated ballistics systems using its unique "stacked projectile" technology. The company is headquartered in Brisbane, Australia and incorporated in Australia, with an office in Arlington, Virginia.
Metal Storm is working with government agencies and departments, as well as industry, to develop a variety of systems utilising the Metal Storm non-mechanical, electronically fired stacked ammunition system.
Metal Storm's weapon technology uses computer-controlled electronic ignition and a system of stacked projectiles, to achieve a completely non-mechanical gun that is very lightweight and compact, providing a very high firepower to weight ratio. The Metal Storm weapons system utilises multiple barrels mounted together on one platform which allows varying munitions types to be deployed in a single, low cost, lightweight weapon system. Firing the weapons by electronic ignition requires no moving parts, allowing reliable long term unattended weapon operation.
Safe Harbour
Certain statements made herein that use the words "estimate," "project," "intend," "expect," "believe" and similar expressions are intended to identify forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve known and unknown risks and uncertainties which could cause the actual results, performance or achievements of the company to be materially different from those which may be expressed or implied by such statements, including, among others, risks or uncertainties associated with the development of the company's technology, the ability of the company to meet its financial requirements, the ability of the company to protect its proprietary technology, potential limitations on the company's technology, the market for the company's products, government regulation in Australia and the US, changes in tax and other laws, changes in competition and the loss of key personnel. For additional information regarding these and other risks and uncertainties associated with the company's business, reference is made to the company's reports filed from time to time with the Securities and Exchange Commission, including the company's Form 20-F.
Contact:
Company Contact:
Australia & USA
Dr Lee Finniear
Chief Executive Officer
Metal Storm Limited
Ph: +61 7 3123 4700
