Borqs Technologies receives Nasdaq delisting letter and will request to appeal The Company is late in filing of the 2019 Annu...
July 15 2020 - 11:30AM
Borqs Technologies, Inc. (Nasdaq: BRQS), (the “Company”, or
“Borqs”), a global leader in embedded software and products for the
Internet of Things (IoT) industry, announced that on July 9, 2020,
the Company received a delisting determination letter (the
"Determination Letter") from the staff of the Listing
Qualifications Department of The Nasdaq Stock Market LLC (the
“Staff” or "Nasdaq"). The Determination Letter notified the Company
that since it had not filed its Annual Report on Form 20-F for the
fiscal year ended December 31, 2019 (the "2019 20-F") by June 30,
2020, the deadline by which the Company was to file the 2019 20-F,
the Company is not in compliance with Nasdaq Listing Rule
5250(c)(1) (the “Rule”) and the Company’s ordinary shares are
subject to delisting from the Nasdaq Capital Market. The
Determination Letter indicates that Listing Rule 5815(d)(4)(B) does
not permit an issuer that is noncompliant with the Rule to present
a plan of compliance to Nasdaq if such issuer has failed to comply
with that provision within one year of a hearing panel
determination of compliance. On March 10, 2020, the Company
received a letter from Nasdaq notifying the Company that it had
regained compliance with the Rule.
The Company will, by July 16, 2020, request to
appeal the Staff’s determination to delist the Company’s securities
with a hearings panel, which will stay the suspension of the
Company’s securities through July 31, 2020. Also by July 16, 2020,
the Company will request an extended stay of the suspension pending
the hearing. The panel will review the request for an extended stay
and notify the Company on or prior to July 31, 2020 whether it will
allow the Company’s securities to continue to trade on the Nasdaq
Capital Market pending the panel’s decision. Hearings are typically
scheduled to occur approximately 30-45 days after the date of the
hearing request.
Borqs is making every effort to file its Annual
Report on Form 20-F in a timely fashion but has been delayed due to
the COVID-19 pandemic, particularly as it has impacted the auditing
process in India and China where most of the Company’s business
activities took place for the year ended December 31, 2019.
The delay was not only due to travel restrictions but also to
unreliable courier services between the two countries from flight
cancellations. The Company is working closely with its independent
auditors to complete the remaining audit procedures shortly by
other available means. The Company made an announcement on July 1st
in a press release indicating certain preliminary unaudited
financial results for the year ended December 31, 2019.
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.
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.
Forward-Looking Statements and
Additional Information
The information above includes “forward-looking
statements” within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Exchange Act
of 1934, as amended. All statements, other than statements of
historical facts, included herein are forward-looking statements.
These forward-looking statements may be identified by their use of
terms and phrases such as “may,” “expect,” “estimate,” “project,”
“plan,” “believe,” “intend,” “achievable,” “anticipate,” “will,”
“continue,” “potential,” “should,” “could,” and similar terms and
phrases. Although the Company believes that the expectations
reflected in these forward-looking statements are reasonable, they
do involve certain assumptions, risks and uncertainties. These
forward-looking statements represent the Company’s current
expectations or beliefs concerning future events, and it is
possible that the results described in this release will not be
achieved. These forward-looking statements are subject to certain
risks, uncertainties and assumptions identified in this release or
as disclosed from time to time in the Company’s filings with the
Securities and Exchange Commission (the “SEC”). Factors that could
cause actual results to differ from the Company’s expectations
include the risk that the panel will not grant the Company’s
request for an extended stay; risk that the panel will not permit
the Company to attempt to regain compliance with the Rule;
uncertainties relating to the ability of the Company to cure any
delinquencies in compliance with the Rule due in part to potential
continued quarantine and travel restrictions on the Company’s
personnel and auditors related to the COVID-19 pandemic; risk
relating to the substantial costs and diversion of personnel’s
attention and resources due to these matters; risk that the
Company’s ordinary shares could be delisted from the Nasdaq Capital
Market and other factors described in the Company’s filings with
the SEC. As a result of these factors, actual results may differ
materially from those indicated or implied by forward-looking
statements.
Any forward-looking statement speaks only as of
the date on which it is made, and, except as required by law, the
Company does not undertake any obligation to update or revise any
forward-looking statement, whether as a result of new information,
future events or otherwise. New factors emerge from time to time,
and it is not possible for the Company to predict all such
factors.
Investor Contact:
Sandra DouDirector of FinanceBorqs Technologies,
Inc.sandra.dou@borqs.net www.borqs.com
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