Shareholders in defence technology company Metal Storm (ASX:MST) will gather on August 19 to essentially vote on whether to approve the issue of shares to new company creditor Dutchess.
At the company's AGM, Metal Storm will seek approval to issue shares to Dutchess to enact the parties' $25 million funding agreement.
Metal Storm said that if shareholders do not approve the line agreement, it will “restrict the company from raising sufficient funds under the Line Agreement to continue its operations in the short term.”
As insurance against this possibility, the company will also aim to ratify several previous share issuances. This way, any issued shares to Dutchess after the meeting could still fall within the 15% limit for shares issued without shareholder approval.
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