Weapons maker Metal Storm Ltd
(ASX:MST) says it still has not received the first tranche of $2.1 million in funding from Assure Fast Holdings.
The deadline for the funds was originally scheduled for November 3 but was extended till Friday December 4, however the funds never arrived.
The company has previously stated that if the funds are not received it may have to appoint an administrator.
However the company says work done over the weekend and documents provided to the company means it expects to receive the funds no later than Tuesday the 8th of December.
Metal Storm says during Friday and Saturday it negotiated an immediate small equity placement to provide carry forward funding.
Additionally the company has finalised negotiations for a further equity funding of up to $25 million as a whole or partial substitute for the funding from Assure Fast Holdings.
Metal Storms board says it is testing the issue of solvency each day and will need to appoint an administrator as soon as that test cannot be satisfied.
Looking back at the past five years, Metal Storm is yet to post a net profit.
