23rd Feb 2016 08:17
LONDON (Alliance News) - Clean water technology company HaloSource Inc said Tuesday it has undertaken a strategic review and will focus solely on its Drinking Water business going forward, and has received an offer for its loss-making HaloKlear environmental water business.
HaloSource said it has received an offer from Dober Chemical Corp to buy the HaloKlear business for around USD2.0 million. This includes an initial cash consideration of USD550,000, a deferred consideration of no less than USD303,000, and not more than USD1.15 million in cash dependent on sales of HaloKlear over the next two years.
The HaloKlear business delivered revenue of USD2.4 million in 2015 but was not profitable during the year.
HaloSource will not focus only on its Drinking Water business, and will make changes to this business to play "key resources" in its two major markets, China and India, which will result in "significant headcount reductions" in the US.
As a result it now expects revenues for its remaining businesses in 2016 to be lower than market expectations, but as a result of substantially reduced costs, expects a net loss for 2016 in line with market expectations.
"The plans we are implementing will leave HaloSource well positioned for success as a Drinking Water focused business. We will continue to focus our efforts on growing our presence in the Drinking Water market by providing market-leading technology that powers the devices of our existing business partners while adding new partnerships as additional players enter this rapidly growing business segment. We expect to improve operating margins and tightly control operating expenses while growing revenues going forward," said President and Chief Executive Officer Martin Coles in a statement.
Shares in HaloSoure were untraded Tuesday morning. They last traded at 4.00 pence.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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