HaloSource Inc Update on Strategy and Trading (8115P)
February 23 2016 - 2:00AM
UK Regulatory
TIDMHAL TIDMHALO
RNS Number : 8115P
HaloSource Inc
23 February 2016
23 February 2016
HaloSource, Inc.
("HaloSource" or the "Company")
UPDATE ON STRATEGY AND TRADING AND SALE OF ENVIRONMENTAL WATER
BUSINESS
HaloSource, Inc. (HAL.LN, HALO.LN), the global clean water
technology company traded on London's AIM, today announces that its
Board has undertaken a review of the Company's strategy and is
implementing its plan to focus exclusively on the growth of its
Drinking Water business going forward. The Company is making
structural changes to the Drinking Water business to place key
resources in its two major markets, China and India, resulting in
significant headcount reductions in the United States. The Board
expects that this will help drive operational efficiencies as well
as improve the Company's ability to work with key Drinking Water
customers in the Asia-Pacific region.
In conjunction with its strategic review, the Company received
an approach from Dober Chemical Corporation ("Dober") to acquire
the Company's HaloKlear(R) branded Environmental Water business
which delivered revenues of $2.4 million for the year ended 31
December 2015 but was not profitable during the year. Under the
terms of the asset sale agreement, the Company will receive an
initial cash consideration of $550,000, subject to post-closing
adjustments, for the book value of inventory and certain capital
assets related to the Environmental Water business, together with
deferred consideration of not less than $303,000 and not more than
$1,147,000 in cash dependent upon sales of HaloKlear(R) over the
next two years. The deferred consideration will be payable
quarterly by Dober. All cash received from Dober will be used to
fund the working capital requirements of the Company. The sale of
the Company's Environmental Water business and the structural
changes the Company is implementing in its Drinking Water business
will substantially reduce annual operational costs going
forward.
As a consequence of its review, the Board now estimates that
revenues from its remaining business segments for 2016 will be
lower than current market expectations. However, the Board expects
the net loss for 2016 to be in line with current market
expectations.
Martin Coles, President and CEO of HaloSource, said:
"The plans we are implementing will leave HaloSource well
positioned for success as a Drinking Water focused business. We
will continue to focus our efforts on growing our presence in the
Drinking Water market by providing market-leading technology that
powers the devices of our existing business partners while adding
new partnerships as additional players enter this rapidly growing
business segment. We expect to improve operating margins and
tightly control operating expenses while growing revenues going
forward."
Enquiries:
HaloSource, Inc.
Martin Coles, Chief Executive via Newgate below
Officer
James Thompson, Chief Financial
Officer
Susan Brown, Director Corporate
Communications
Liberum Capital (NOMAD and
Joint Broker)
Richard Bootle
Jill Li
Steve Pearce +44 20 3100 2222
Newgate (PR Adviser)
James Benjamin +44 20 7680 6550
Alex Shilov halosource@newgatecomms.com
Lydia Thompson
Allenby Capital (Joint Broker)
Chris Crawford
Kat Perez +44 20 3328 5656
About HaloSource
HaloSource, Inc. creates innovative solutions for water
purification that serve people and protect our most valuable
resource. The Company works with scientists and industry experts
across the globe in search of new ways to improve water quality and
has been awarded more than 70 patents for its ground breaking
chemistries, which provide effective and environmentally
responsible solutions to the growing issue of water stress.
HaloSource was founded in Seattle, Washington and has operations
in China and in India. Learn more about the Company's research and
development and future cutting edge technologies by visiting
www.halosource.com.
HaloPure and SeaKlear are either trademarks or registered
trademarks of HaloSource, Inc. All other trademarks, brand names or
product names belong to their respective holders.
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCLLFVTFDIFFIR
(END) Dow Jones Newswires
February 23, 2016 02:00 ET (07:00 GMT)
Halosource CP S (LSE:HAL)
Historical Stock Chart
From Apr 2024 to May 2024
Halosource CP S (LSE:HAL)
Historical Stock Chart
From May 2023 to May 2024