Borqs Technologies Announces Investment Into a Major EMS in China – Shenzhen Crave Communication
January 22 2018 - 9:00AM
Borqs Technologies, Inc. (Nasdaq:BRQS) (the “Company”), a global
leader in embedded software and products for the Internet of Things
(IoT), announces the signing of an agreement to acquire 13.8% of
both Shenzhen Crave Communication Co., Ltd (“Crave”) and its
affiliated business entity in Hong Kong, Colmei Technology
International Ltd (“Colmei”).
Crave, a manufacturer of mobile terminal
devices, was formed in 1996 and incorporated in 2008 in Shenzhen,
China. With multiple high speed SMT lines, assembly lines and
packaging lines, its annual capacity reaches over 20 million
units. Ideally situated in Shenzhen, Crave exports final
products for customers in South America, India, Indonesia, the
Philippines and Vietnam. Colmei, Crave’s affiliated entity
under common ownership, is a sales entity located in Hong Kong with
established relationships with international banks to facilitate
transactions with its global clients. Both Crave and Colmei
are privately owned. In 2017, Borqs has contracted
Crave/Colmei for multiple projects in the manufacturing of Borqs’
products.
On January 18, 2018 the Company agreed to
acquire shares representing 13.8% of both Crave and Colmei, for $13
million, consisting of $3 million in Company ordinary shares to be
issued at closing and $10 million in cash to be paid over 3
years.
Pat Chan, the CEO of Borqs: “Our investment into
Crave and Colmei will benefit us in multiple ways: i) ensure
access to valuable manufacturing capacity, ii) assist us with
supply chain financing by leveraging their resources with financial
institutions in Hong Kong, iii) improve negotiation leverage
with component suppliers based on Crave’s purchasing volume, and
iv) providing premium quality manufacturing.”
Mr. Xilin Fang, Chairman of both Crave and
Colmei, said: “The investment from Borqs, a Nasdaq listed company
with strong R&D capabilities, is an endorsement by
itself. The innovative designs that Borqs brings to market
will add attraction to our products within this highly competitive
mobile communications industry. I believe the combination of
Borqs, Crave and Colmei will be a win-win for both companies.”
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. 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
DisclosureThis 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, 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.
ContactSandra Dou, Investor
Relations Sr. ManagerEmail: sandra.dou@borqs.ne
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