Borqs Technologies Receives Strategic Investment From Tongnan Economic Development Zone of Chongqing City
May 16 2019 - 1:00PM
Borqs Technologies, Inc. (Nasdaq: BRQS) (the “Company”), a global
provider of embedded software and products for the Internet of
Things (IoT), today reported that the Company has completed a
financing transaction via the private sale of ordinary shares to
the Chongqing City Youtong Equity Investment Fund, LLP (“Chongqing
Youtong”) by which Chongqing Youtong will own approximately 9.9% of
the Company’s outstanding shares as a result.
The transaction involves the sale of 3,734,283
shares at the fixed price of US$3.713 per share for a total of
US$13,865,393. Of the total transaction, 75% which equals
2,800,712 shares for US$10,399,045 was completed as of May 16, 2019
(the “First Closing”). The remainder 25% which equals 933,571
shares valued at $3,466,348 will be issued in exchange for other
assets of Chongqing Youtong to be valuated and completed six months
after the First Closing. The shares will be unregistered and
subject to lock up provisions for one year.
The Company intends to set up a R&D center
in Chongqing in the near term which will also serve as Borqs’ China
head office, and may establish manufacturing facilities in the
future. The Beijing office will also be active for servicing
current clients. The strategy of the economic development
zone is to assist technology designers and manufacturers such as
Borqs to enhance the contribution to the area’s GDP growth and
employment. The Company’s operations within the area will
also enjoy government supported manufacturing supply chain
financial assistance, favorable equipment leasing programs and
local tax incentives. The several economic development zones
of Chongqing City are the key manufacturing centers for many of the
world’s renowned electronics name brands.
About Borqs Technologies,
Inc.
Borqs Technologies is a leading provider of
software and products for the IoT, providing customizable,
differentiated and scalable Android-based smart connected devices
and cloud service solutions. Borqs has achieved leadership and
customer recognition as an innovative end-to-end IoT solutions
provider leveraging its strategic chipset partner relationships as
well as its broad software and IP portfolio. The Company designs,
develops and provides turnkey solutions across device form factors
such as smartphones, tablets, smartwatches, trackers, automotive
IVI, and vertical application devices (for restaurants, payments
etc.). For more information, please visit the Company’s
website (www.borqs.com).
Forward-Looking Statements and
Additional Information
This press release includes “forward-looking
statements” that involve risks and uncertainties that could cause
actual results to differ materially from what is expected. Words
such as “expects”, “anticipates” and variations and similar words
and expressions are intended to identify such forward-looking
statements, but the absence of these words does not mean that a
statement is not forward-looking. Such forward-looking statements
may include, without limitation, statements regarding the plans and
objectives of management for future operations, projections of
income or loss or other financial items, or our future financial
performance, based on currently available information and reflect
our management’s current beliefs. Many factors could cause actual
events or results to differ materially from the events and results
discussed in the forward-looking statements, including, without
limitation, market acceptance of our products and services,
competition from existing products or new products that may emerge,
the implementation of our business model and strategic plans for
our business and our products, estimates of our future revenue,
expenses, capital requirements and our need for financing, our
financial performance, and current and future government
regulations, developments relating to our competitors, so the
reader is advised to refer to the Risk Factors sections of the
Company’s filings with the Securities and Exchange Commission for
additional information identifying important factors that could
cause actual results to differ materially from those anticipated in
the forward-looking statements. There are also risks involving the
Company’s ability to successfully relocate operations to Chongqing
and realize the benefits of the Chongqing Youtong investment.
Except as expressly required by applicable securities law, the
Company disclaims any obligation to update any forward-looking
statements, whether as a result of new information, future events
or otherwise.
Investor Contact:
Sandra Dou Investor Relations Sr. Manager Borqs Technologies,
Inc. sandra.dou@borqs.net www.borqs.com
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