Defence technology company Metal Storm (ASX:MST) has announced a rights issue to raise $3 million.
The company has lodged a prospectus for a non-renounceable, 1-for-4 pro rata rights issue for existing shareholders in Australia, New Zealand and Singapore.
The non-underwritten, $0.01 per new share offer is planned as a means to raise funds to be used as working capital for the development of its current projects.
A related goal is to reduce the company's reliance on its line of credit with Dutchess Opportunity Fund, which was secured on June 22.
As part of the rights issue, one option exercisable at $0.015 and valid for three years will be offered for each new share purchased.