Publicly listed Australian firm Metal Storm has run out of operating cash and credit after much needed investment funds have failed to materialize. The Australian reports

The Brisbane-based weapons maker said this morning it has again given the first tranche of Assure Fast Holdings’ $US35m funding due 7pm Brisbane time last night (8pm AEDT) another 24 hours and that it was now “testing the issue of solvency each day”.

“The company has reduced its day to day expenditure to remain solvent for as long as possible to allow as much time as possible for this funding to be received,” Metal Storm said in a statement.

Metal Storm share price (ASX:MST)

It would be sad if this company is forced to close and sell off their technology when it is just starting to show real promise.

MetalStorm 3GL Grenade Launcher (bullpup configuration)

Many thanks to Daniel E. Watters for the tip.