9th May 2016 07:19
LONDON (Alliance News) - Clean water technology company HaloSource Inc on Monday said it has entered a conditional agreement to sell its recreational water business to Natural Chemistry LP, a specialty chemicals manufacturer for the swimming pool industry.
HaloSource will sell the business for USD7.5 million in cash upfront, plus up to USD500,000 in deferred cash based on the division hitting targets through to the end of 2016.
The sale will be conditional on securing the approval of HaloSource shareholders, as the size of the divestment constitutes a fundamental change in business for HaloSource under AIM rules. A meeting to vote on the plans will take place on May 19.
HaloSource said the recreational water business is not core to its future strategy, which will be focused on its drinking water business and on markets where growth opportunities remain strong. Proceeds from the sale will be used to grow the drinking water business.
"Following the sale of both the recreational water business and the previously announced environmental water business, HaloSource will be well positioned and capitalised for success as a drinking water focused business, in line with our long term strategy of becoming the technology solutions provider of choice for major multi-national companies operating in the rapidly growing drinking water sector in our key markets," said HaloSource Chief Executive and President Martin Coles.
HaloSource shares were down 4.0% to 2.99 pence Monday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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