Heliospace, the aerospace subsidiary of Helio Corporation (HLEO), converted $1,057,765 of founder‑issued loans into common equity on December 2, 2025, a move announced on December 4. The conversion issued 7,398,459 shares at a price of $0.142971 per share, which was based on the 20‑day volume‑weighted average price through December 1.
The transaction removes the debt from Heliospace’s balance sheet and replaces it with long‑term equity, improving the subsidiary’s debt‑to‑equity ratio. However, Helio Corporation’s parent still carries a negative shareholder equity of –$89.1 % (as of July 30, 2025) and a cash balance of only $43,933, so the conversion does not resolve the parent’s broader liquidity and solvency concerns.
The conversion also dilutes existing shareholders, as the share count increases by more than 7 million. Management emphasized that the founders’ confidence in the company’s long‑term vision underpins the move, noting that “strengthening the balance sheet at this stage will improve our ability to attract new investment and expand our capabilities.” The founders’ willingness to exchange debt for equity signals a commitment to the company’s future growth, particularly as Heliospace pursues new contracts and expands into additional business lines in 2026.
Heliospace’s core business remains space‑qualified mechanisms and advanced deployable systems for NASA, government agencies, and commercial customers. The conversion does not bring new cash into the company; it simply swaps existing debt for equity, so Heliospace’s near‑term cash obligations are unchanged. The move is a positive step for the subsidiary, but Helio Corporation’s overall financial health remains precarious, with limited liquidity and negative equity that could constrain future financing or operational initiatives.
Helio Corporation is distinct from Helios Technologies (HLIO), a larger motion‑control company with a different financial profile. The conversion pertains solely to HLEO’s subsidiary and should not be conflated with the activities of HLIO.
The transaction is a material capital‑structure change that could influence analysts’ views on Helio’s risk profile and future financing needs, making it a significant event for investors monitoring the company’s financial trajectory.
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