Metal Storm Raises A$9.19 Million -US$4.9 Million- From Private Placement in Australia
Company to Issue Bonus Options to All Shareholders
ARLINGTON, Va.--(BUSINESS WIRE)--Aug. 23, 2002--Metal Storm Limited (NASDAQ Small Cap: MTSX - News) and (ASX code: MST), a pioneer of electronic ballistics technology, is pleased to advise it has raised A$9,192,755 (approximately US$4.96 million) via a private placement of 14,142,700 ordinary shares at A$0.65 per share (707,135 ADRs at US$7.01).
Investors participating in the private placement include institutional and private investors who will also be granted 14,142,700 options to acquire the same number of ordinary shares at an exercise price of A$0.65 per share (707,135 ADRs at US$7.01) at any time from 3 September 2002 until 6 September 2004.
These 14,142,700 shares, along with the 423,903,558 shares already issued, brings the total shares on issue by the company to 438,046,258 (21,902,313 ADRs).
The company also announces the issue to existing shareholders as at 3 September 2002 of a bonus option on a 1 for 20 basis exercisable at A$0.65 per share at any time until 6 September 2004. The total shares on issue by the company if all bonus and placement options are exercised will be 477,030,968 (23,851,548 ADRs) which would raise a further $23,957,999 (approximately US$12.9 million). Full details of the bonus options will be available in the short form prospectus to be released to the market shortly and mailed to shareholders next week.
Mike O'Dwyer, President and CEO of Metal Storm said, "We are very pleased with the level of interest shown by these investors in this placement and appreciate the confidence they hold in the potential for Metal Storm's revolutionary technology."
"This funding will provide us with working capital to assist in commercialization of the Metal Storm technology."
Visit www.metalstorm.com
About Metal Storm
Metal Storm Limited is a research and development company based in Brisbane, Australia. The Company is capturing attention from defense organizations worldwide with its revolutionary 100% electronic ballistics technology, which has no known conventional equivalent. Metal Storm currently has approximately US$50 million in research and development funding in place to develop its technology from leading government defense-related agencies in Australian and the United States. Additionally, the company is well positioned to support the U.S. government's more urgent homeland defense needs. Recently, the U.S. Department of Defense (DoD) has accelerated the programs under development as it strengthens its counter-terrorism capabilities.
Safe Harbor
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 U.S., 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:
Metal Storm, Inc.
Charles Vehlow, CCO
703-248-8218
ms@metalstorm.com
or
Investor
Lippert/Heilshorn & Assoc.
Jody Burfening/Kristine Hong
212-838-3777
jks@lhai.com
or
Media
Lippert/Heilshorn & Assoc.
Chenoa Taitt
212-838-3777
ctaitt@lhai.com |
