3rd Nov 2016 13:20
LONDON (Alliance News) - Clean water technology company HaloSource Inc shares were down by more than half Thursday, as the company warned it expects its full-year revenue to be "materially lower than market expectations" due to weak demand from an unnamed key customer in the second half of the year.
Shares in HaloSource were down 58% at 0.98 pence on Thursday.
AIM-listed HaloSource said it now expects its revenue for the year ending December 31 to be in the range of USD2 million to USD3 million, resulting in a higher net loss than expected for the year. HaloSource said it also expects to have net cash of USD2.0 million on hand at the end of the year, only enough to fund its activities to the second quarter of 2017 at the current cash burn rate.
HaloSource said as a result it is taking steps to prolong its funding position, including closing its production facility in India before the end of 2016. The company said this will result in an expectation of revenue in the range of USD4 million to USD6 million for 2017.
"In light of the above, the company's board will undertake a review of all strategic options available to the company," said HaloSource.
By Adam Clark; [email protected]
Copyright 2016 Alliance News Limited. All Rights Reserved.