Helio nears completion of its restructuring program and strengthens its foundation for future growth.
BERKELEY, CA / ACCESS Newswire / June 16, 2026 / Helio Corporation (HLEO:OTCID) ("Helio" or the "Company"), a developer of advanced space power and engineering solutions supporting next-generation space infrastructure, today announces the successful settlement of all previously defaulted Notes Payable, advancing the final phase of a restructuring effort that has reduced the Company's total debt by roughly half since January 31, 2026. The settlement further strengthens Helio's balance sheet, lowers future debt service obligations, and enables management to focus greater resources on commercialization, strategic partnerships, and long-term growth initiatives.
As disclosed in the Company's April 30, 2026 quarterly report, Helio completed settlement agreements with all five holders of previously defaulted Notes Payable. Through these agreements, the Company resolved all previously defaulted obligations and retired $879,236 of debt through conversion into equity representing a significant milestone in Helio's ongoing restructuring efforts.
Subsequent to the second quarter financial report ending April 30, 2026, Helio repaid in cash $309,952 of Convertible Notes. The repayment satisfied three Convertible Notes and eliminated those legacy obligations from the Company's balance sheet. As a result of these restructuring initiatives, Helio's total outstanding debt has been reduced to less than $1.0 million, down from $3,421,445 as reported in the 10-K ending on October 31, 2025. Monthly debt service obligations have declined to approximately $30,000, while the average interest rate on the Company's remaining term debt stands at 9.75%.
The Company's strengthening financial position has also been supported by continued investor participation. Subsequent to the second quarter 10-Q financial report ending April 30, 2026, more than 55 accredited retail investors invested $572,800 in common shares, while an additional $374,000 was raised through preferred shares. These investments improved Helio's shareholder equity position, reducing the deficit from approximately negative $1.9 million as reported in the Company's April 30, 2026 second quarter financial results to less than negative $1.0 million today. This represents a substantial improvement from approximately negative $3.89 million as of January 31, 2026, before the current management team began implementing its restructuring and recapitalization initiatives.
The Company believes its financial restructuring program is nearing completion. Helio is actively advancing the regulatory and capital markets initiatives associated with its planned underwritten secondary offering and proposed national securities exchange listing. Together, these efforts are expected to represent the final phase of the restructuring process initiated earlier this year.
At the same time, Helio continues to advance commercialization opportunities for its Space-Based Solar Power (SBSP) platform. Recent additions to its customer pipeline include Poderosa, a major gold miner in Peru valued at roughly $2 billion, and Elisium, an innovative net-zero luxury resort microcity under development in South Florida. Helio's active contract pipeline now exceeds $12 million, with approximately two-thirds of those opportunities related to lunar programs, reflecting growing interest in the Company's technologies across both terrestrial and lunar-based applications. Pilot testing activities associated with these opportunities are expected to increase operating losses only modestly.
"Over the past several months, we've done the hard work of restructuring the balance sheet and addressing legacy obligations that were holding the Company back," said Ed Cabrera, Chairman and Chief Executive Officer of Helio Corporation. "With much of that work now behind us, we can devote more of our time and resources to executing our business plan."
With its restructuring program nearing completion, with total outstanding debt levels dropping below $1 million, Helio is increasingly focused on executing its commercialization strategy. The Company believes its strengthened financial position provides greater flexibility to pursue opportunities in SBSP, lunar activities, strategic partnerships, and intellectual property development. Management believes the operational and financial groundwork established over the past several months provides a stronger foundation for the Company's next phase of growth.
For More Information:
Ed Cabrera
Chairman of the Board and Chief Executive Officer
Helio Corporation
(956) 225-9639
emcabrera@helio.space
About Helio Corporation
Helio is pioneering a new class of energy infrastructure-space-based power systems aka "Power plants in space" that captures solar energy beyond Earth's atmosphere and beams it safely and efficiently to the surface. Our vision is to establish orbital energy platforms as a foundational layer of the global power grid, delivering uninterrupted, carbon-free electricity at scale and reshaping how nations power cities, industries, and critical systems. Founded in 2018 as the 'problem solvers to the space industry,' Helio designs and delivers world-class space mechanisms, advanced antenna systems, and space design solutions; supporting NASA, private companies, universities, and global space agencies across missions ranging from small-scale programs to flagship space initiatives. We are proud to be a trusted partner to over a dozen space agencies, organizations, and companies across the globe. Our products can be found operating from the Sun to Jupiter. From NASA and European Space Agency to emerging private aerospace firms and academic institutions, we collaborate with some of the most innovative and forward-thinking players in the space industry.
For more information on the new strategic direction, financing initiatives and management additions, please visit www.helio.space to be added to our email list.
Note Regarding Forward Looking Statements:
Some of the matters discussed herein may contain forward-looking statements that involve significant risk and uncertainties. Forward-looking statements can be identified by the use of words like "believes," "could," "possibly," "probably," "anticipates," "estimates," "projects," "expects," "may," "will," "should," "seek," "intend," "plan," "expect," or "consider" or the negative of these expressions or other variations, or by discussions of strategy that involve risks and uncertainties. All forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual transactions, results, performance or achievements to be materially different from any future transactions, results, performance or achievements expressed or implied by such forward-looking statements, including our ability to obtain financing on acceptable terms or at all, and other risk factors included in the reports we file with the Securities and Exchange Commission (the "Commission"). We base these forward-looking statements on current expectations and projections about future events and the information currently available to us. Although we believe that the assumptions for these forward-looking statements are reasonable, any of the assumptions could prove to be inaccurate. Consequently, no representation or warranty can be given that the estimates, opinions, or assumptions made in or referenced by this press release, including, but not limited to, our ability to obtain financing, will prove to be accurate. We caution you that the forward-looking statements in this press release are only estimates and predictions, or statements or current intent. Actual results or outcomes, or actions that we ultimately undertake, could differ materially from those anticipated in the forward-looking statements due to risks, uncertainties or actual events differing from the assumptions underlying these statements. We caution investors not to rely on the forward-looking statements contained in or made in connection with this press release and encourage investors to review the reports we file with the Commission. The Company undertakes no duty or obligation to update any forward-looking statements contained in this press release as a result of new information, future events or changes in the Company's business plans or model.
SOURCE: Helio Corporation
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https://www.accessnewswire.com/newsroom/en/aerospace-and-defense/helio-reports-significant-debt-reduction-new-equity-investment-and-improved-l-1178034
