HALO Technologies has announced plans to expand its marketing reach, signing a term sheet to take a strategic stake in Success Publishing Pty Ltd.

HALO (ASX:HAL), a recently-listed business which offers sophisticated, institutional-grade research and trade execution software to everyday investors, announced today it had signed a binding term sheet for a strategic investment in Success Publishing.

The deal will see HAL and affiliated party Amalgamated Australian Investment Group Limited (AAIG) established as a preferred partner of Success Publishing – which last year secured a licence with an international brand, globally recognised in financial markets and the general public, to launch and publish magazines and host events in Australia for the next 10 years.

In exchange for its strategic investment, HALO will receive exclusive access to marketing opportunities to promote its software and services direct to Success Publishing’s audience.

The move is expected to significantly expand HALO’s marketing reach to sophisticated and aspirational audiences interested in financial and investment products and services.

“The board and management team are excited by the potential of this strategic investment and the ability to market to a targeted, financially sophisticated audience whilst providing HALO with the opportunity to position itself alongside an established, globally reputable and widely respected media brand,” HALO Chair Ivan Oshry said.

“This deal is expected to expand HALO’s access to a network of high net-worth clients and grow awareness for HALO’s services through co-branding opportunities.

“This agreement points to an exciting growth period for the company post-listing and caps a busy period in an overall challenging investment climate. It also highlights the possibility of strong alliances for HALO users, B2B customers and shareholders alike.”

Setting the terms

Under the term sheet provisions, HALO and AAIG have each subscribed for $375,000 worth of redeemable convertible notes to be issued by Success Publishing, with the notes convertible in whole or part at the election of HALO and AAIG respectively on preferential terms.   If not converted, the notes must be repaid after 36 months.  Pending repayment, the notes will earn interest at a rate of 10% per annum compounded monthly and payable quarterly in arears.

The conversion rate is subject to a maximum valuation of Success Publishing of $7.5 million. The deal includes an option for HALO and AAIG to subscribe, upon request of Success Publishing, for a combined further $750,000 worth of convertible notes on the same terms as their initial investment.

In exchange, HALO will be appointed the exclusive provider of its suite of products and services to Success Publishing audiences and have the right to talk and present at Success Publishing events that relate to finance or investment.

HALO will also be able to promote its products and services in Success’ publications and programs both online and in print.

Success Publishing expects to release its first print and digital magazine and launch its first series of events in Q3 of 2022.

Building on a busy start

Today’s announcement comes on the back of a busy period for HALO, which listed on the ASX in April and has made substantial ground since.

The company is continuing to develop new products with a view to expanding capability of its software in both the business-to-business (B2B) and business-to-customer (B2C) realms.

HALO expects a regionally focused investment product which will be managed by its existing research team to be launched imminently.

A series of tech updates are also in progress, designed to improve the usability of HALO’s products across web and mobile offerings and integrate the software with Xplan – a software platform widely used by financial advisor groups.

This is expected to drive further adoption of the product with established financial advisors and their customers.

HALO is also working towards certification with its auditors BDO to review its GS007 capabilities over the coming year. The company said it was progressing towards achieving GS007 Type 2 compliance for its customer data management during the early part of FY24.

That move would increase the scope and size of its potential B2B client reach by ensuring best practice processes and controls around customer data.

Investment has also been made in staff and technology since listing, with the appointment of marketing resources to support investment in marketing activities with a view to expansion into new markets.

HALO said additional staff would be added as and when required to support the expected scale up of business operations.

The company is also negotiating with new subscription resellers, and management continues to pursue growth to its subscriber base through multiple B2B channels.




This article was developed in collaboration with HALO Technologies, a Stockhead advertiser at the time of publishing.


This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.