Heliospectra Gets USD 1.6 Million Credit Facility From Its Owners

Heliospectra (STO:HELIO) has published its half-year report ending 30th of June 2022. During the period, the Swedish company received a short-term loan of approximately SEK 17 million (USD 1.6 million) from the three main owners Weland Stål AB, Agartha AB (formerly ADMA Förvaltnings AB), and Corespring New Technology AB. The purpose of the loans is to strengthen the company’s liquidity and working capital.

“High investments in combination with low sales figures have resulted in a strained liquidity situation. To secure liquidity in the short term, Heliospectra’s three main owners – Weland Stål AB, Agartha AB, and Corespring New Technology AB, granted Heliospectra an unlimited credit facility in Q1 that extends to the publication of the Year End Report 2022.” Comments Heliospectra’s CEO, Bonny Heeren in their financial results presentation “The credit facility provides us and the Board time to secure funding and liquidity in the long term and the ability to strategically invest to secure our position in the market.”

The company has had to restructure its internal organization and set a new strategy to align with new market conditions. Similar to what CubicFarm Systems Corp announced this week, the company had to carry off cost-saving initiatives to reduce operational expenditure by 26% compared to the previous year.  Indeed, Bonny Heeren mentions that the company had “to work actively to source and prepare for longer lead times, these factors increase our COGS and the industry” as they were facing resources and component shortages.

Despite all the challenges laying ahead, the company still managed to register orders for a Canadian-controlled environment specialist conducting an installation for a global seed producer. The order is for Heliospectra’s controllable ELIXIA LED lighting solution, and the order value is USD 243,000.

SALES AND FINANCIAL PERFORMANCE

From April to June, order intake amounted to SEK 5,346 (-61,492) thousand (USD 480K). For the period January – June, the corresponding figure is SEK 7,387 (-48,957) thousand (USD 750K). Last year’s figure includes the canceled order from Nectar Farms, Australia, which was announced in April 2021. Net sales during the period April – June amounted to SEK 3,349 (8,768) thousand (USD 285K), and operating profit amounted to SEK -10,245 (-9,230) thousand (-USD 960K), implying a negative operating margin (negative). Profit after tax was SEK -10,245 (-9,230) thousand (-USD 960K). For the period January – June, net sales amounted to SEK 8,911 (18,728) (USD 855K), and operating profit amounted to SEK -18,042 (-16,532) thousand (-USD 1.7 million), implying a negative operating margin (negative). Profit after tax was SEK -18,042 (-16,537) (-USD 1.7 million).

CASH FLOW, JANUARY – JUNE

Operating cash flow was SEK 2,741 (-14,755) thousand (USD 280K). Total cash flow was SEK -2,023 (-20,320) thousand (-USD 190K). Cash equivalents at the end of the period were SEK 8,700 (35,138) thousand (USD 760K). To strengthen the company’s liquidity, Heliospectra’s three main owners Weland Stål AB, Agartha AB, and Corespring New Technology AB have granted the company a credit facility that extends until the day of publication of the company’s yearend report for the financial year 2022. The credit facility is not limited to its amount and can be called by the company if necessary. This will provide the company with stability in the coming months as the company’s new strategy is rolled out