Heliospectra AB (publ) Interim Management Statement January - September 2016

(GOTHENBURG, Sweden/SAN FRANCISCO, CA, October 28th, 2016) – Heliospectra AB (publ) (OTCQB: HLSPY, FIRSTNORTH: HELIO), a world leader in intelligent lighting technology for controlled environments horticulture, presents today their Interim Management Statement for January - September 2016.

Turnover and profit/loss January - September

Significant events

Januari – March

April – June

July – September

Events after the end of the period

A Word From the CEO

Dear shareholders of Heliospectra AB (publ),

The market for medicinal plants continues to develop rapidly. On top of the 23 states in the US where growing medicinal cannabis has been legalized, another handful are set to rule on this decision in the near future. In Australia it will be implemented by November according to a recent ruling. We are observing a global trend. Turkey has recently ruled to legalize controlled production in 19 provinces. Earlier this year Macedonia legalized use for medicinal purposes. These types of discussions are going around many other European countries, where it is already possible to buy approved prescribed substances in pharmacies. We can see this same trend in Latin America, where Uruguay is one of the countries that has taken the lead. 

There are a number of important driving forces behind Heliospectra’s technology. FAO recently stated that climate change related to farming is already considerable, while at the same time the demand for food will increase by at least 60% by 2050. We have a situation involving a growing population and increasing urbanization. To be able handle this situation the production methods need to be improved and concede to an increased level of automation. This also drives agricultural technology companies – who develop and sell seeds, pesticides and fertilizer – to invest in new technology. Furthermore, the actual production will have to take place closer to the consumer, which accelerates the growth of “city farming” and cuts down on logistical flows. We are counting on significant changes being made to the entire value chain in the years to come. 

The company’s positive development continues. Compared to the same period last year we have increased our revenues by 160 %.  We can also enjoy a testimony to the confidence our customers place in us when one of the world’s leading agricultural technology company places their fourth order for another 1.9 MSEK

To continue to finance our expansion on the market, the company’s board has suggested a preferential rights issue of approx. 91MSEK, with the possibility of an over allocation of approx. 20MSEK. It is very positive that our principal owners support the company and have committed to subscribe, while also making sure that the entire rights issue is fully underwritten. The raised capital mainly relates to operating capital for sales and marketing, continued product development and to strengthen the balance sheet. 

With rapidly growing markets, world leading products and strong principal owners backing us we can look positively to the future. 

Staffan Hillberg, CEO
Heliospectra AB (publ)

For the full report: http://ir.heliospectra.com/en/financial-reports/

Investor Relations:

Staffan Hillberg, CEO of Heliospectra | 46 (0)708 36 59 44  | staffan.hillberg@heliospectra.com

Michael Swartz, Senior Analyst | Viridian Capital Advisors, LLC | 1 212-333-0257 | mswartz@viridianca.com

G&W is Heliospectra’s Certified Advisor for Nasdaq First North - www.gwkapital.se

About Heliospectra AB
Heliospectra AB (publ) (OTCQB: HLSPY, FIRSTNORTH: HELIO) (www.heliospectra.com) specializes in intelligent lighting technology for plant research and greenhouse cultivation. The Company's lighting system provides an effective and durable technology for cultivating greenhouse and indoor plants by combining several different groups of versatile light emitting diodes (LEDs) with optics, remote sensing techniques, and a robust heat dissipation solution. This proprietary setup gives growers the ability to control the intensity and wavelengths of the light emitted, creating a spectrum specifically adjusted to different plant species and growth stages to better facilitate photosynthesis. The complete, highly- engineered lamp produces crops that look better, taste better, and have a longer shelf-life than those grown under HID lamps. The technology not only reduces energy consumption by up to 50%, but also helps stimulate growth characteristics and improve plant quality. Other benefits include reduced light pollution, lower mercury use due to the avoidance of traditional HID/HPS bulbs, and less HVAC investment and monthly expense requirements.

Heliospectra products are based on in-depth knowledge in plant physiology and photosynthesis along with a unique way to utilize modern LED technology. After six years of development in Sweden, the company has now begun to expand into the international market. The company has raised more than $ 21 million in capital and has received more than $2.6 million through academic scholarships and grants. It has also received numerous awards for its forward thinking technology. Principal owners: Weland Steel www.welandstal.se, Swedish Industrial Fund www.industrifonden.se, Midroc www.midroc.se, Avanza Pension www.avanza.se.

Forward-Looking Statements 
The statements in this press release constitute forward-looking statements within the meaning of federal securities laws. Such statements are based on our current beliefs and expectations and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond our control. In addition, such forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. Potential risks and uncertainties include, but are not limited to, technical advances in the industry as well as political and economic conditions present within the industry. We do not take any obligation to update any forward-looking statement to reflect events or developments after a forward-looking statement was made.