By Jennifer Chiou
New York, July 28 - Metal Storm Ltd. announced it will raise up to A$27.5 million in a rights issue of unsecured convertible notes.
The company said that 203.7 million notes with a face value of A$0.135 are on offer on the basis of one note for each 2.674 shares.
Metal Storm added that noteholders will receive a coupon of 10% per year, payable monthly, for a three-year period.
Investors will also receive one option for every two notes allotted. The options may be exercised for a period of three years after the issue date at the exercise price of A$0.15 per option.
The issue is fully underwritten by Patersons Securities Ltd. and sub-underwritten to A$26.125 million by Harmony Investment Fund Ltd.
The company said that proceeds will be primarily used to fund the advancement of its commercialization strategy and to finance specific product development programs.
Based in Brisbane, Australia, Metal Storm is a multi-national defense technology company.
| Issuer: | Metal Storm Ltd.
|
| Issue: | Subscription rights and options for unsecured convertible notes
|
| Amount: | Up to A$27.5 million
|
| Maturity: | Three years
|
| Exercise price: | A$0.15
|
| Announcement date: | July 28
|
| Underwriters: | Patersons Securities Ltd. (lead), Harmony Investment Fund Ltd.
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
