HAL.L Regulatory News (HAL)

  HaloSource Corporation

("HaloSource" or the "Company") 

astreaTM Launches Innovative Water Bottle with Subscription Platform for Filter Delivery

Clean water innovator HaloSource Corporation announced today the launch of its innovative filtering water bottle and filter replacement subscription service on astreawater.com. The astreaTM ONE bottle is the first and only filtering bottle to be certified by the Water Quality Association (WQA) for the reduction of lead and other common contaminants that can be found in tap water. Official certification was announced on 2 October 2018 and certification documents can be viewed on the WQA website at:

https://www.wqa.org/find-products/ctl/detail/mid/1054/cid/halosource_inc/sid/3/keyword/halosource

In support of the bottle launch, the Company is unveiling its new astrea website, a platform designed to enable consumers sign up for subscription plans that ship the replacement filters directly to their homes.

The launch of the astreaTM ONE bottle is a major step forward for HaloSource as it gives the Company a "one of a kind" product that offers critical and relevant benefits (like lead reduction) to consumers in the US, the largest filtered water market in the world. The Company successfully launched the filtering bottle concept on crowdfund platform Indiegogo earlier this year and is now selling the astreaTM ONE bottle with filter subscription plans on astreawater.com.

HaloSource CEO James Thompson commented, "Because of the aging infrastructure and the state of water quality in the US, we believe that all reusable water bottles should have a filter. Lead in water is not just a Flint, Michigan problem. It is showing up in homes in Chicago, schools in Detroit and in other cities across America and as a parent, it is really concerning. With this launch, we are providing families with the first mobile solution that helps solve the very serious problem of contamination of our drinking water with lead and other heavy metals. Never before has a portable solution existed that offers the certified performance of our astrea bottle and filters, and we also are making it easy for consumers to maintain that performance by shipping the replacement filters straight to their door. We see the astrea ONE as the next generation reusable bottle because other bottles are only as good as the water put in them, but our bottle will give users confidence in the water they drink from it."

The Bottle

The astreaTM brand team used market research, personal experience with filtering bottles and consumer feedback to ensure that the innovative reusable water bottle has features that make it easy for its customers to use. "Most filtering bottles on the market today were designed for camping and backpacking. They offer little protection from common contaminants found in tap water and they are not always easy to drink from," said astreaTM General Manager Greg LaFata. "From the start, our product team set out to design the first everyday filtering water bottle that could make the water taste great, offer real protection from common tap water contaminants and be easy to drink from. Because our customers will use this bottle everyday, we obsessed over the details and included many features that would make it easy to use and easy to maintain its certified performance, and that's why offering filter subscription plans was important to the product offering from the start."

The 20oz astreaTM ONE bottle (15oz capacity with filter installed) is made from 18/8 kitchen-grade stainless steel, has a seamless interior that makes it easy to clean and double-wall construction that insulates the bottle, keeping water cold for up to 12 hours. The exterior of the bottle has a durable "no sweat" powder-coating and all parts are BPA-free. The bottle makes staying hydrated easy through a number of innovative features, including a patent-pending fill-through lid and easy-sip straw. The fill-through lid enables users to fill the bottle without having to take the lid off, a major consumer pain point identified by the team in its product development process. The easy-sip straw is covered with a soft, food-grade coating and stows in the lid when not in use, offering an additional level of spill protection. When you drink from the straw, the water is filtered as you drink, so there is no wait time for filtered water.

The Filter

The astreaTM ONE uses a high-performance media invented by the Company's team of water scientists and it is the first bottle to earn the NSF53 certification for the reduction of lead, copper, cadmium, mercury, trivalent chromium and benzene, as well as the NSF42 certification for the reduction of chlorine and zinc from the WQA. Each filter is certified to filter 80L (approximately 20 gallons) of water which lasts about two months with average use. A color-coordinated filter change reminder is located on the straw to ensure that users know when they should expect to change the filter and receive a filter in the mail if they are on the monthly subscription plan. Using the astreaTM ONE to get filtered water is about 1/10 the cost of bottled water and each filter saves up to 160 plastic water bottles from being thrown away.

Subscription Plans

HaloSource is now offering two basic subscription plans on astreawater.com, a month-to-month plan and an annual plan. Users signed up for the month-to-month plan will be billed $12 upon shipment of their replacement filter every two months. The annual subscription costs $60 a year ($10/filter) and the Company will mail all six replacement filters for the year in one shipment. In the case of both plans, the user is in control of the subscription and can pause or cancel at any time. While enrolled in the plan, all cartridge deliveries are eligible for free shipping. "We know people are busy and everyone with a filtering refrigerator has a story about never changing their filter because it's a pain to find the right one and they don't have time to figure it out," said Justin Howard Director of E-Commerce. "With astrea, we see the the delivery of filters directly to our customers' homes as an integrated part of our product offering and a convenience for our customers. We don't want them to lose the certified performance of their bottle because they didn't have a filter on-hand when they needed it. In addition to the filter delivery, our customers can also receive notifications for filter replacement, access to special offers and exclusive perks. We think clean, great tasting water everywhere you go for as little as $5/month is a great value."

In addition to selling on its own site, the Company also expects the bottles to be available in all Sur La Table stores nationwide, on surlatable.com, and on amazon.com within the next few weeks.

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About HaloSource

HaloSource Corporation 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 millions of consumers globally. The Company's class-leading HaloPure® 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 India. Learn more about the Company's research and development and future novel technologies by visiting www.halosource.com or www.astreawater.com.

The HaloPure® and astreaTM brands are trademarks of HaloSource Corporation. 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.