Ballistics researcher Metal Storm (ASX:MST) is in crisis today, after it failed to receive $2.1 million worth of much-needed equity capital for the second day running.
The company told investors it had slashed its day-to-day expenditure in an attempt to remain solvent, but must test the issue of solvency every day the funds are not received, and may need to appoint a voluntary administrator if the delays continue.
Metal Storm had signed an equity subscription and loan facility agreement worth US$35 million ($37.8 million) with Assure Fast Holdings.
But the first payment was delayed from November 3 to December 2, and then delayed again yesterday, due to issues that neither company has managed to directly influence, Metal Storm said.
MST shares have fallen 8% today to $0.02.
Join the CIO Australia group on LinkedIn. The group is open to CIOs, IT Directors, COOs, CTOs and senior IT managers.