HaloSource shares plunge as bankruptcy concerns grow

Published June 15th, 2017

Shares in troubled AIM-listed water technology company HaloSource plunged by more than 50% earlier this week after the company revealed that its £1.9 million conditional fundraising would not take place as planned.

The company is now negotiating with existing and potential shareholders over its future as a going concern, given that its remaining cash balance will only allow it to continue trading until the end of this month. Should no external cash injection be forthcoming, the company will be forced to initiate insolvency proceedings.

The shares are now trading at around 25p each – valuing the company at around £6.3 million – in theory offering a relatively inexpensive takeover opportunity for someone who can re-energise the roll-out of the company’s proprietary HaloPure point-of-use water filtration technology.

To date, HaloSource has made the most commercial impact in China, India and Latin America, although its gravity-fed filtration systems are not sold in the US.