Borqs Technologies, Inc. Completes Due Diligence Process for US$150 million Line of Credit Offer
May 04 2020 - 9:00AM
Borqs Technologies, Inc. (Nasdaq: BRQS), (the “Company”, or
“Borqs”), a global leader in embedded software and products for the
Internet of Things (IoT) industry, today announced that the Company
has completed the due diligence process as requested by the lenders
of a line of credit up to US$150 million (see Company release on
April 13, 2020) for working capital needs for the Company’s
customer pre-orders forecasted at over US$100 million. The
line of credit will become available upon the final approval
procedures of the lenders based on the pre-orders received by the
company.
The funds will be primarily used for the
procurement of orders including 1) a hi-tech mobile personal safety
and tracking device for a US electronics retail chain which Borqs
has begun delivering since 2019 with over 140,000 units to date,
and demand for the remainder of 2020 is expected to be two to three
times higher than last year due to the current COVID-19
environment, 2) a sizable order for a kids smartwatch from a US
top-tier mobile operator that can be linked to the parent’s
smartphone for real-time location tracking and geofencing, 3) a
mobile point-of-sale machine with state-of-the-art security
features for an India multinational conglomerate, and 4) a super
ruggedized industrial use smartphone for a German customer
particularly for hazardous environments in the petrochemical and
mining industries that meets Google’s sophisticated Android
Enterprise Recommended (AER) validation. The tracker and the
smartwatch are particularly in demand due to the heightened safety
alertness of consumers in the current pandemic environment.
The orders are for mobile and IoT devices with
Borqs’ embedded software scheduled for delivery beginning near the
end of the 2nd quarter of 2020 and extending into the year
2021.
About Borqs Technologies,
Inc.
Borqs Technologies is a global leader in
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.
According to an article by InSight Success
(https://www.insightssuccess.com/borqs-leader-in-android-based-products-solutions-for-iot/):
“Borqs has strategic relationship with the leading chipset vendors
like Intel and Qualcomm that has helped Borqs to have an early
& deep understanding of the chipset capabilities to deliver
leadership innovation to targeted IoT devices…..Their diversified
customer base includes mobile chipset manufacturers, mobile device
OEMs and mobile operators. This includes more than six mobile
chipset manufacturers (Intel, Qualcomm, Marvell, et al.,) and
29 connected device OEMs (LGE, Micromax, Acer, Motorola,
Vizio, etc.) in 11 countries with BorqsWare solutions embedded
in approximately more than 15 million units worldwide.”
The article further says: “Borqs has Android based platforms
optimized for different category of devices & cloud services
platform for IoT. Borqs is a prime deliverer of end-to-end
capabilities across ideation, design, development, production,
connectivity services and distribution. Their software IP and
enhancements provide the ability to rapidly deliver customized and
premium user experiences, and they have the ability to accelerate
monetization of IP in hardware and firmware through proprietary
modules.”
Borqs’ unique strengths include its Android and
Android Wear Licenses which enabled the Company to develop a
software IP library covering chipset software, Android
enhancements, domain specific usage and system performance
optimization, suitable for large and low volume customized
products. The Company is also currently in development of 5G
products for phones and hotspots.
Visit us at: 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”, “believes”, “anticipates”, “intends”,
“estimates”, “predicts”, “seeks”, “may”, “might”, “plan”,
“possible”, “should” 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
relate to future events or future results, 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 the possibility that the
Company will not consummate its previously announced line of credit
transaction on terms favorable to the Company or at all, the
possibility that the Company may not receive actual orders in the
amounts forecasted, the possibility that the Company may not be
able to deliver its wearable device to satisfy the increased demand
forecasted, and the negative impact of the coronavirus on the
Company’s supply chain, revenues and overall results of operations,
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. 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 DouDirector of FinanceBorqs Technologies,
Inc.sandra.dou@borqs.net
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