CANNAINVESTOR Magazine December / January 2016 - Page 46

RECENT POSITIVE DEVELOPMENTS

The Company derives revenues from the sales of LED lighting systems, aftermarket sales of software and hardware, subscription fees from plant biofeedback data, equipment lease financing fees, and intellectual property licensing fees. Heliospectra gained strong momentum going into 2016 after its breakthrough year in the market during 2015. The company experienced significant top-line revenue growth of 340%, with Heliospecta generating revenue of $1.6 million in 2015 compared to $0.4 million in the previous year. This positive trend continued through the third quarter of 2016 with revenues increasing to $1.8 million compared to $665,000 from

January to September in 2015.

The Company received several breakthrough orders in the U.S. and Europe. The Company sold one of the largest LED cannabis cultivation installations in the world to a Las Vegas Commercial Cultivation Facility, with Phase 1 of the contract valued at $672K. Additionally, the Company received its received its third order, valued at $220,000, from a Fortune 500 global agricultural technology company. This order brings the total light count deployed for this client to approximately 1,000 Heliospectra high-efficiency E60 LED grow light. In December 2016, Heliospectra closed an oversubscribed capital raise, which amounted to approximately $11.75 million before issue costs and nearly 1,200 new shareholders.

46