And it keeps getting worse. How can an acquisition in Feb 22 for $17M then be impaired by $11.3M in May23 and sold in Aug 23 for $588,540? Divestment of THM

Halo retains the manufacturing of THM products for 18 months

At the time of purchase this is what we were told.

• A fast growing, profitable and cash generative business, in FY21, THM recorded revenue of ~$21 million and normalised EBITDA of $4 million
• Acquisition price of $17.0 million and a $5.0 million earn-out, subject to revenue and EBITDA performance milestones

Have things really changed by that much? If things are that bad is the company not trading insolvent?

My timing on this one was spectacularly wrong and a lesson hard learnt. Do not take announcements as being accurate and beware change in management which looks to only serve itself.

Held in SM and RL as so little left it is not worth selling.

Slightly higher shelf in a different Woolworths but already at 1/2 price!

The Healthy Mummy products at Woolworths. Not exactly premium position on the bottom shelf compared to man/lady shake.

Article in today's Australian "Cash ban for online health spruikers"

https://www.theaustralian.com.au/nation/cash-ban-for-online-health-spruikers/news-story/5c02b45e705e7e76ab1cc1f2c70c0401

I wonder what the impact will be for advertising for HLF and costs for THM marketing.

The New Code clarifies the position. 

• Paid or incentivised testimonials, regardless of whether any payment is disclosed, or the testimonial is genuine, are prohibited.
• While genuine unpaid testimonials are permitted, under the New Code, influencers, direct sellers and anyone else who receives “valuable consideration” for their testimonial are taken to be persons “involved with the production, sale, supply or marketing of the goods” (and therefore prohibited from providing testimonials).
• “Valuable consideration” is broad and would include non-monetary items such as services, gifts, opportunities, or any other incentive. During a webinar on 17 February 2022, the TGA indicated that all advertising that includes paid or incentivised testimonials that is currently live and accessible (including on social media) will need to be taken down by 1 July 2022, even if uploaded prior to that date.
• Brand ambassadors can endorse a therapeutic good (that is, provide an expression of support for a product or brand) provided the endorsement does not refer to the person’s personal experience using the good (which would amount to a testimonial). Endorsements must also meet specific requirements under the New Code. For example, if the endorsement refers to health benefits, the endorsement must be typical of the benefit that can be expected from the goods when used in accordance with the label and the approved indication and use.
• The New Code also prohibits endorsements by particular people and organisations, including brand ambassadors who represent themselves as having expertise or qualifications in a health-related field, current and former health practitioners, and medical researchers.

https://www.kwm.com/au/en/insights/latest-thinking/major-changes-to-the-therapeutic-goods-advertising-code.html