HaloSource warns of insolvency if fundraising fails
Source - SMW
HaloSource has warned it would have to initiate insolvency proceedings and suspend trading on AIM if it failed to complete its £1.9m fundraising by the end of the month.
The company said completion was conditional on one of the key cornerstone investors receiving Chinese governmental approval to enable the investor to complete its participation.
The company said it had been advised by the cornerstone investor that approval had not been granted and that it would now be seeking to make another application for that approval.
HaloSource said: "Without the proceeds of the fundraise, the company's cash position is expected to fund the company until the end of June 2017 at which point the company will cease to trade as a going concern.
"Therefore, if the fundraise does not complete prior to the company exhausting its cash resources, the board will have no choice but to initiate insolvency proceedings and seek suspension to trading of the company's shares on AIM and shareholders may lose all or a substantial amount of their equity investment."