Halosource's shares dive on fundraise warning

Shares in Halosource dumped more than half their value as it warned that without the proceeds of a £1.9m fundraise it had sufficient cash until only the end of June, at which point it would cease to trade as a going concern.

The global clean water technology company's announcement came within an update on its conditional fundraising for £1.9m.

"Completion of the fundraise is conditional on one of the key cornerstone investors to the fundraise receiving a certain Chinese governmental approval to enable the investor to complete its participation in the fundraise," said Halosource.

"The company has been advised by that cornerstone investor that the Chinese governmental approval has not been granted, but the cornerstone investor has advised the Company that it will now be seeking to make another application for that approval."

Halosource said without the proceeds of the fundraise its cash position was expected to fund the company until the end of June 2017, at which point it would "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," it said.

"Shareholders may lose all or a substantial amount of their equity investment."

At 10:54 BST, shares in AIM-listed Halosource were down 51.61% to 0.38p each.