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Having from November 2015 onwards been warning on the shares of water technology company HaloSource (HALO), I note an update on trading and its strategic review.
On trading, the company updates that “revenues from continuing operations for the full year ended 31 December 2016 are expected to be not less than $2 million (2016: $4.2 million). Net cash at the year-end is expected to be approximately $2.1 million (2015: $4.6 million)”.
It re-emphasises that revenue for 2016 was impacted by decreased demand from its largest Chinese customer. This customer is noted to have “now resumed shipments” - and the company also notes that it has “added several key development contracts for Asian product launches” and “made solid progress on the development and scale-up of our new lead removal technology and we expect it to be available during H1 2017”.
On its ‘strategic review’, it is updated that this has recently concluded and that it “will pursue either additional external equity financing or a sale of the company”.
Hmmm. I previously concluded that the track record and a looming cash crunch ahoy suggest the strategic review options will not prove greatly attractive. The noted suggest that it indeed remains desperate times here. Bargepole/sell.
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