Redeye Today: No drama in Heliospectra’s announcement that it will prepare a balance sheet for liquidation purposes (“kontrollbalansräkning”)

Important information: Redeye is acting financial advisor to Heliospectra in the announced rights issue with execution during Nov - Dec 2016. The remuneration for producing research content on Heliospectra is a fixed amount agreed in advance, regardless of the conclusions in the report and the outcome in the rights issue. The analyst team at Redeye is working entirely independent from the corporate finance team that is engaged in the financial advisory service to Heliospectra. _______________________________________________________________________ Heliospectra today informs that it will prepare a balance sheet for liquidation purposes.

If a company continues to run its operations when more than half of its share capital is exhausted, then its board of directors and management risk being held personally liable for the company's debts – that is unless the board takes the proper actions to determine the company’s financial viability. Preparation of a balance sheet for liquidation purposes is the first step the board needs to take. This might all sound very dramatic, in reality though, Heliospectra’s capital needs are already solved through the fully secured rights issue announced earlier this week.

The preparation of the balance sheet for liquidation purposes is essentially just a formality.