HaloSource is holding talks with a cornerstone investor over fundraising options which would not require Chinese governmental approval.
HaloSource warned last week that 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.
HaloSource said it now understood that the cornerstone investor would not be making the application because there could be no guarantee of a positive outcome.
The company said it was now in ongoing discussions with the cornerstone investor regarding alternative fundraising options which would not require an application to be made for Chinese governmental approval.#
The company said it also continued to explore fundraising options with other investors including existing shareholders.
(LON:HAL) HaloSource share price was -4p at 3.5p
(LON:HALO) HaloSource DI share price was -0.1p at 0.18p