well overdone3 Nov 2016 13:28
FUNDED TILL Q2 2017 THIS SHOULD BOUNCE UP NICELY
HaloSource, Inc. (HAL.LN, HALO.LN), the global clean water technology solutions company trading on London's AIM market, today provides an update on trading ahead of the year ending 31 December 2016.
As announced on 26 July 2016, total revenues from continuing operations for the six months ended 30 June 2016 were negatively impacted by manufacturing related stoppages at a key customer in China. Although these issues were resolved over the summer, demand for the Company's products into the second half from this key customer has been weaker than expected. As a result, the Company expects revenues for the year ending 31 December 2016 to be materially lower than market expectations, and in the range of $2 to $3 million. While the Company has taken significant steps during the year to reduce operating expenses, the reduction in revenues will result in the net loss for the full year being higher than market expectations.
As at 31 December 2016 the Company expects to have net cash of approximately $2.0 million, which would fund the Company through to Q2 2017 at the current cash burn rate. However, the Board will continue to take proactive steps to reduce the cash burn rate to prolong the funding position of the Company through to at least the end of 2017. This includes closing its production facility in India by the end of 2016, with customers in India to continue to be serviced by its Chinese facility. The impact of these steps will result in the Company's expectations for revenue for 2017 being in a range of $4 to $6 million.
In light of the above, the Company's Board will undertake a review of all strategic options available to the Company. Shareholders will be updated further in due course.