Long-term yields for U.S. Treasuries should indeed firm but be tempered by a slowing as this phase o...
Heliospectra AB: Value of an Ancillary Nature
10/27/2015 9:56 am EST
Though many investors think the big money is made in the cannabis industry by growing and selling marijuana, Michael Berger, of Technical420.com, sees value in the ancillary businesses, such as this company that specializes in intelligent lighting technology for plant research and greenhouse cultivation.
During the gold rush most people did not make their fortunes mining for gold. The real winners during the gold rush were the people, like Samuel Brannan and Levi Strauss, selling the ancillary products to the gold miners (i.e. picks, shovels, clothing, etc.). The birth of the cannabis industry has created a similar opportunity for investors and this Friday, investors can learn about an ancillary business levered to the rapidly developing cannabis industry.
Although many investors think the big money is made by growing and selling marijuana, we do not believe that this is the case. The regulatory nature of the cannabis industry has made it difficult for businesses to operate profitably and we see value in the ancillary businesses.
Heliospectra AB (HLSPY) is levered to the growth of the cannabis industry and the company specializes in intelligent lighting technology for plant research and greenhouse cultivation. HLSPY’s technology combines sensors with state-of-the-art software that controls the lighting.
Entering New Markets
Although HLSPY continues to execute on its business plan, shares have fallen more than 74% during 2015. During the last month, HLSPY has come off of its lows and shares have rallied more than 32%. This rally came after the company’s European patent application was approved by the European Patent Office.
HLSPY’s technology is protected by a portfolio of patents and patents pending.
Europe was the seventh region to approve the company’s patent (Europe, United States, Russia, China, Canada, Japan, and Hong Kong).
Improving Balance Sheet
During the last quarter, HLSPY has significantly improved its financial position and strengthened its balance sheet. In August, the company completed a $3 million private placement. HLSPY said the funds would be used to cover production and purchasing costs related to purchase orders received from United States customers.
Following that capital raise, HLSPY continued to penetrate the United States market and increase its market share. Earlier this month, HLSPY announced that they will receive approximately $2.8 million from the execution of warrants. The company said that they planned to use these funds to further expand into the United States market.
Want to Learn More?
We believe that the market does not fully understand the potential that HLSPY has and you can learn more about the company from CEO Staffan Hillberg at the Cannabis Investing Symposium.
The conference is free to attend and you can sign up right here.
Michael Berger, Founder and President, Technical420.com
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