Throughout 2020, the COVID-19 pandemic affected all aspects of our business. We faced unprecedented challenges that impacted our ability to travel and meet with customers. The pandemic has also led to restrictions for both existing and potential customers, such as NectarFarms, which has meant that they have not been able to start their installations. As you will recall from prior letters, we quickly responded by recalibrating our strategy and right-sizing our operating model. As a result, we were able to deliver on my promise to our shareholders – which was to remain focused, continue to innovate, support and educate growers, and exit 2020 in a position of strength. We have done this with the support of our employees, customers, partners and you, our shareholders.
During the fourth quarter, we saw the results of our prior efforts to build a strong, highly skilled, and professional Sales and Marketing team in North America. With our marketing efforts and the relentless focus of our sales team throughout 2020, we connected with thousands of growers across the globe. Our Sales team worked harder than ever to solidify our connections with our growers and worked diligently with leads to turn them into customers. As a result, we were able to close the quarter strong, with a 34% improvement in our operational costs in the fourth quarter and a 51% increase in year over year sales.
Furthermore, we had a successful right issuance, raising SEK47,8M with 124% subscription. This will help us accelerate the development of helioCORE™, fluorescence sensors and existing products, drive strategic expansion throughout Europe, and reinforce the company’s financial position. To complement this, we came toan agreement with two of the strongest engineering firms in Gothenburg to speedup our technology objectives around helioCORE, our sensor offerings, the newgeneration of MITRA, and the future development of a new suite of horticulture lighting solutions including hardware and software.
Our achievements over the last 14 years would not have been possible without our dedicated employees. We want to make sure our employees get the chance to take part in future value development and as a result, we transferred 930,000 stock warrants of series P03 from the Company to senior executives and key personnel within the group.
As we look forward through 2021, we have strengthened our sales focus by rebalancing our pipeline to increase focus on food accounts and large and mega greenhouses. Through strategic partnership agreements, we are working to build the best network of like-minded channel partners, dedicated to achieving our EU goals together. These steps, backed by our fundraising, will enable us to increase our EU resources and therefore to expand more quickly into those markets.
In conclusion, we are excited that we ended the year strong, delivered on our promises, and focused our organization on the year ahead. We are excited to have atop-tier and cohesive team in place, and we are even more excited about delivering on our ambitions. In 2021, we are looking forward to furthering our mission to redefine nature’s potential through innovation, technology, and meaningful partnerships coupled with our commitment to delivering operational excellence to our growers.
President & CEO
Head of IR
+46 (0)72 536 8116
+46 (0)8 121 576 90