The one stop source for breaking news, expert analysis, and podcasts on fast-moving AIM and LSE listed shares

Join ShareProphets at less than 2p per article

> All the big AIM fraud exposés

> 300 articles and podcasts a month

> Hot share tips

> Original investigations by our experienced team

> No ads, no click-bait, no auto-play videos

Find out more

HaloSource – proposed re-domicile, wonder what’s to soon follow?

By Steve Moore | Monday 12 March 2018

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.

Previously writing on HaloSource (HALO) last month, I noted developments again pointing to tight financials. There’s now a further announcement from the company…

This is of “a proposed relocation of its corporate domicile from Washington State, USA, to the British Virgin Islands and a change of name to HaloSource Corporation”. It is noted this is as US regulations “require the company to issue, in connection with any private offering to foreign purchasers, shares that bear restrictive legends requiring paper certificates, and the legend must be maintained for one year before dematerialisation, allowing electronic trading… limiting the company's ability to easily conduct offerings and raise funds, as well as limiting liquidity in the trading of the company's shares”.

Uh oh… and there it is; “the company's reasons… are specifically to remove what the directors believe is an impediment to the company raising additional capital”.

This follows a trading warning in December before a latest bailout from Woodford & co was even approved. That saw £2.8 million ($3.8 million) raised – but was with it having been cash crunch ahoy before and 2017 anticipated to show a net loss “in the range of $5.0 to $5.5 million”.

I wonder how long after a re-domicile, less impeded ability to raise additional capital will attempt to be used then? It remains my view that, at least until there’s evidence of having progressed to a sustainable cash situation, the stance is sell / bargepole.

Filed under:

Never miss a story.

This area of the site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by and is not intended to be relied upon by users in making (or refraining from making) any investment decisions.

More on HALO


Comments are turned off for this article.

Site by Everywhen