Key Highlights

  • Halo issued $5.34 million of three-year convertible notes paying 12.5% interest, lifting cash to $3.07 million at 30 September.
  • Operating revenue fell to $2.93 million from $3.71 million in the June quarter as brokerage activity eased.
  • Subscription revenue rose to $1.02 million from $0.86 million, while net operating cash outflow widened to $1.47 million.
  • Annual interest on the notes is about $0.67 million, a significant Fixed Cost for a Business that is not yet Cash Flow positive.

Halo Technologies (ASX:HAL), which runs an online global equities research and trading platform, has turned to debt-like funding rather than new shares to support its growth plans. During the September quarter it issued $5.34 million of three-year convertible notes paying 12.5% interest a year.

According to its Appendix 4C released on 30 October 2026, the notes lifted cash to $3.07 million at 30 September, equal to about 2.09 quarters of funding. Meanwhile, Operating Revenue fell to $2.93 million from $3.71 million in the June quarter as brokerage activity eased, and net operating cash outflow widened to $1.47 million.

What Halo does

Halo is a Sydney-based financial technology company that has been generating revenue for some time. It offers research tools, global trade execution and ready-made themed portfolios to investors, financial advisers and self-managed super funds, including through its Macrovue business. It earns brokerage on trades and subscription fees. Funds under management were $354.2 million at 30 June 2026, according to its half-year results.

The company has restructured its UK business and now describes itself as a capital-light, business-to-business platform. It says it is in discussions with potential partners in the Asia-Pacific region, though no agreements have been announced.

The numbers

Subscription revenue rose to $1.02 million in the September quarter from $0.86 million, while brokerage revenue fell. The company says an expanded domestic sales team has not yet shown up in revenue, but it expects significant growth in coming quarters.

For the half year to 30 June 2026, Halo reported operating revenue of $6.77 million, down 13%, and a net loss after tax of $2.98 million, roughly half the loss a year earlier after cost cuts concentrated in the UK.

In the September quarter, the company also repaid a $0.60 million secured short-term loan, and its 4C shows a further $1.51 million "other" financing outflow. Payments to related parties of $3.12 million were trading and cost-of-sales payments to Australian Stock Report, an entity related to directors Matthew Roberts and George Paxton, and to IPW Advisory.

The convertible notes

The notes offer, announced on 2 July 2026, targeted $5 million with capacity for up to $6.75 million and remains open for six months unless extended. The notes are unsecured and convert at $0.155 a share. Lead manager IPW Wholesale, associated with Mr Roberts, receives a cash fee of 11% of funds raised, which the board considers to be on arm's length terms.

At $5.34 million, annual interest is about $0.67 million, a significant fixed cost for a business that is not yet cash flow positive.

Risks and upcoming plans

The key risks are revenue sensitivity to market trading volumes, the cost of servicing the notes, reliance on related-party providers for trading services, and execution risk in converting registered users into funded accounts. Halo is targeting an optional HIN-based custody service for ASX-listed shares during 2027. Dennis Fulling joined the board as a non-executive director in August.