HaloSource Inc Trading Update (5681L)
July 20 2017 - 2:00AM
UK Regulatory
TIDMHAL TIDMHALO
RNS Number : 5681L
HaloSource Inc
20 July 2017
20 July 2017
HaloSource, Inc.
("HaloSource" or the "Company")
TRADING UPDATE
HaloSource Inc. (HAL.LN, HALO.LN), the global clean water
technology company traded on London Stock Exchange's AIM market,
today announces a trading update for the six-month period ended 30
June 2017.
Total revenues from continuing operations for the period ended
30 June 2017 are expected to be $0.9 million (H1 2016: $1.4
million, H2 2016: $0.7 million). Revenue during the period came
primarily from established customers including Perfect, Lonsid,
Midea, and Pentair. As previously announced, in H1 2017 the Company
completed successful NSF testing of its lead-removal media, raised
$2.2M of additional financing (from new and existing investors) and
signed a 5-year e-commerce distribution agreement with JiuBan in
China.
The Company continues to make significant reductions in its
operating expenses and expects them to be reduced in H1 2017 by
more than 30% as compared to H1 2016. Given the Company's focus on
reaching cashflow breakeven, management expects to continue to
reduce operating expenses in H2 2017.
Net cash as at 30 June 2017 is expected to be $2.1 million. The
Company expects that for the year ended 31 December 2017 revenue
from continuing operations will be between $4 million and $5
million, operating expenses will be between $5.5 million and $6
million and the net loss will be between $3.5 million and $4.5
million.
James Thompson, CEO of HaloSource, commented:
"We are very pleased with the progress we have made with our
newly executed all-drinking water business strategy. We grew
revenues almost 30% over 2H 2016, reflecting the continued interest
by our customers in our technologies, and we expect to see
continued growth going-forward. Additionally, we made significant
announcements in the area of lead-removal and a brand new
e-commerce distribution partner in China. New products and new
distribution will drive continued top-line growth in a market that
continues to grow at double digit rates.
Customer concentration is always an issue with emerging
technology companies and historically we have experienced revenue
shortfalls as a result. With new distribution agreements like
Jiuban, where their exclusivity in the e-commerce channel is
maintained with the purchase of $10 million worth of products over
the initial 3-year period of the agreement, we believe we can start
to diversify our customer concentration risk. This deal is the
first of its kind for the Company; directly selling a branded line
of bottles and pitchers marketed under HaloSource's new astrea(TM)
brand (www.astreawater.com) via an established e-commerce partner.
We expect to do more of these types of distribution agreements
going forward, where we extract more value from our portfolio of
best-in-class technologies."
The information communicated in this Announcement is inside
information for the purposes of Article 7 of Market Abuse
Regulation 596/2014 ("MAR"). For the purposes of MAR and Article 2
of Commission Implementing Regulation (EU) 2016/1055, this
announcement is being made on behalf of the Company by Craig
Crowell, Chief Financial Officer.
Enquiries:
HaloSource, Inc.
James Thompson, Chief Executive
Officer +1 425 419 2258
Craig Crowell, Chief Financial
Officer +1 425 419 2248
Liberum Capital (NOMAD and
Broker)
Richard Bootle, Jill Li, Steve
Pearce +44 203 100 2222
About HaloSource
HaloSource, Inc. innovates and integrates technologies to
deliver clean drinking water solutions to partners with trusted
brands around the world. The Company works with scientists and
industry experts across the globe in search of new ways to improve
drinking water quality and has been awarded more than 30 patents
for its ground-breaking chemistries, which provide safe drinking
water for more than 10 million consumers globally. The Company's
class-leading HaloPure(R) Drinking Water technology has the highest
global certifications, including registration with the US EPA.
Founded in Seattle, Washington, HaloSource has grown to become
an influential leader in drinking water purification. HaloSource is
headquartered in the US with 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(R) is a registered trademark of HaloSource, Inc.
astrea(TM) is a new brand in progress of registration for consumer
products. All other trademarks, brand names or product names belong
to their respective holders.
This document contains certain forward-looking statements
relating to the Company. The Company considers any statements that
are not historical facts as "forward-looking statements". They
relate to events and trends that are subject to risk and
uncertainty that may cause actual results and the financial
performance of the Company to differ materially from those
contained in any forward-looking statement. These statements are
made by management in good faith based on information available to
them and such statements should be treated with caution due to the
inherent uncertainties, including both economic and business risk
factors, underlying any such forward-looking information
This information is provided by RNS
The company news service from the London Stock Exchange
END
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