The Australian weapons company Metal Storm Limited has already suffered several delays of financial assistance from the mysterious investment company registered in the British Virgin Islands. It seems there is little information about Assure Fast Holdings and its chairman Robert Rivero who planned to invest a total amount of $US33 million to Metal Storm in equity and debt.
The BVI company Assure Fast planned to initially subscribe $US1.925 million for 110 million shares at a price of just over $0.02 per share, with a further 890 million shares at a similar price, and a starting parcel of 100 million options for a total amount of $US15.57 million. Chief executive of Metal Storm Lee Finniear admitted that this deal would provide Assure the control over Brisbane-based company. Assure Fast also planned to lend $US17.5 million to Metal Storm on terms that have not been decided upon yet.
A first tranche for shares was due already in late October, but its deadline was moved several times, because of such obstacles as bank holidays, cyclones and Metal Storm not knowing where Robert Rivero was based (now it is known that in Manila). The last term was set on this Thursday. Meanwhile, investors are learning more about the mysterious deal with the BVI company. Metal Storm securities have fallen 6.45 per cent to 2.9 cents.
Terry O’Dwyer, the chairman of Metal Storm, described Mr. Rivero as a private investor. Cris Frianeza, secretary-general of the Philippine Chamber of Commerce and Industry, told that his organization had not been able to find any information about Mr. Rivero. Also, the executive director of the Australian-New Zealand Chamber of Commerce Philippines Claudine David is “not familiar” to him. There is no information about this Philippine businessman in English internet. All these facts caused some doubts and skepticism about the Metal Storm deal with the BVI company owned by him. Mr. O’Dwyer declined to comment this, saying the company is comfortable that the financial aid is progressing.
Metal Storm has been pursuing due diligence and checks to ensure the money is clean. The company also informed that they have not finished necessary banking processes. Now Metal Storm’s director is assisting the negotiations over the deal in Hong Kong.