(GOTHENBURG,Sweden October 27, 2020)–Heliospectra AB (publ) (NorthAmerican ADR OTCQB: HLSPY, and Nasdaq First North Growth Market: HELIO),a worldleader in intelligent lighting technology for greenhouse and controlled plantgrowth environments, presents Interim Report for January-September 2020.
Full report is enclosedto this press release and is also uploaded at https://www.heliospectra.com/investor-relations/reports-documents
SUMMARY OF REPORT:
SALES ANDFINANCIAL PERFORMANCE, January–September
Netsales amounted to KSEK 27,338 (22,746) which means an increase of 20% comparedto last year. Of the period’s sales, the MITRA product group made up 44%. Theoperating loss amounted to KSEK -30,757 (-33,043) KSEK, signifying a negativeoperating margin (neg). The loss after tax was KSEK -30,747 (-33,164).
CASH FLOW,January – September
Operatingcash flow was KSEK -35,442 (5,594). Total cash flow was KSEK -35,743 (2,698).Previous year includes a Rights Issue amounting to KSEK 49,280.
The global pandemiccontinues to impact the world on both a social and economic level. While ourcustomers were reluctant to invest in CAPEX during these unsettling times, wehave been working since spring to reshape and right-size our organization.
We are takingsignificant strategic steps to ensure we are in control and moving the businessforward. Firstly, we have secured a rights issuance to facilitate nextgeneration technology development and market penetration. Secondly, we arenarrowing our focus on key markets. And thirdly, we are back on the road andselling at full force. Overall, today we are in a much healthier position,bolstered by an increase in interest from prospective customers.
The rights issuancewill secure the Company SEK 50.6 million before issue costs. Issue proceeds are intended to be invested asfollows:
~40% to be used for the development of helioCORE™, biosensors andexisting products. We are advancing the next generation of technology toharness light and crop control for sustainable digital farming.
~35% to drive our strategic expansion throughout Europe. Afterestablishing a footprint in the US and Canada, it is now time for us toactively explore the EU market. Our goal is to have at least 30% of ourrevenues come from European customers within 3 years’ time. In order to do sowe need to select the best network of channel partners, place staff and createthe right offer accordingly.
~25% to be used to reinforce the Company’s financial position.
While to some extentthe purpose of the rights issuance is to remedy the effects of Covid-19 on thebusiness, its main objective is to give us the means for rapid growth over thecoming years. Research and Markets forecasts a healthy compound annual growthrate of 20.2% by 2027 for the global horticulture lighting market. Heliospectraexpects to share in that growth. So, despite the challenges presented by thepandemic, we look forward to harvesting rewards from the innovations we havebeen pioneering over the past 14 years.
As we expand intostrategic markets, we are also continuously evaluating our existing ones. Whilewe have a strong footprint in the North American cannabis market, we arerecalibrating our presence across the vegetable sector to allow us to betterfocus on those with the highest potential.
The pandemiccontinues to significantly disrupt the global economy, and thus our salesresults have been impacted similar to prior periods. However, due to our strongmarketing and sales efforts in Q2, our pipelines continue to fill with strongleads which we are aggressively working to further cultivate. Importantly, thesales team is back on the road and meeting with potential clients and currentcustomers – in a safe and responsible manner.
We are also activelymanaging ongoing projects such as Nectar Farms. Backed up by strong investors,the project is moving ahead but awaiting a construction date dependent uponlockdowns in Victoria. Until then, we are in constant communication with theirteam to ensure we provide any support needed.
In conclusion, we are proud of the groundwork we have laid overthe last 9 months, which has positioned us to finish the year strong. With theadditional funding and an energetic focus on executing our strategy, we willcontinue to strengthen our organization, our networks and our product offeringsto advance our business.
President & CEO
Ali Ahmadian, CEO of Heliospectra | +46 (0)72 203 6344| email@example.com
Heliospectra AB (publ)(OTCQB: HLSPY, and Nasdaq First North Growth Market: HELIO) was founded in2006 in Sweden by plant scientists and biologists with one vision – to makecrop production more intelligent and resource-efficient. Today, with customersacross six continents, Heliospectra is the global leader in innovativehorticulture lighting technology, custom light control systems and specializedservices for greenhouse and controlled plant growth environments. Designedby growers for growers, Heliospectra builds customized LED lightingstrategies and controls to automate production schedules, forecast yields andmonitor crop health and performance with real-time data and response, todeliver the light plants love and the consistent results growers need.
For more information, please visit https://www.heliospectra.com.
Company HELIO is listed at Nasdaq First North Growth Marketwith Redeye AB as Certified Adviser:
Certifiedadviser@redeye.se, +46 (0)8 121 576 90.
The statements in this press release constitute forward-looking statementswithin the meaning of federal securities laws. Such statements are based on ourcurrent beliefs and expectations and are inherently subject to significantbusiness, economic and competitive uncertainties and contingencies, many ofwhich are beyond our control. In addition, such forward-looking statements aresubject to assumptions with respect to future business strategies and decisionsthat are subject to change. Potential risks and uncertainties include, but arenot limited to, technical advances in the industry as well as political andeconomic conditions present within the industry. We do not take any obligationto update any forward-looking statement to reflect events or developments aftera forward-looking statement was made.
This information was submitted for publication at 08,00 CET on the 27th of October 2020.