Borqs Technologies Enters Into Agreements to Extinguish Debt Totaling Approximately $18 Million and to Eliminate Institutiona...
December 24 2020 - 2:00PM
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 entered into
Agreements dated December 14, 2020 with its senior lender and LMFA
Financing LLC (“LMFA”), a Florida limited liability company and
wholly owned subsidiary of LM Funding America, Inc. (Nasdaq: LMFA),
in which LMFA is committed to purchase up to be approximately $18
million of debt in tranches, which when completed will eliminate
substantially all of the debt with the Company’s senior lender.
LMFA will convert the purchased debt into common shares of the
Company, pursuant to a court order that allows the conversion
shares to be issued as unrestricted securities in a transaction
that is exempt from registration under Section 3(a)(10) of the
Securities Act of 1933, as amended. Please refer to the company’s
SEC filings for additional information about the transaction.
Some of the benefits of the transaction
structure include:
- Upon full performance of the
transaction, elimination of substantially all of the debt owed to
the senior lender, subject to the court order and regulatory
procedures;
- A standstill on potential actions
against the Company by the senior lender, so long as the
transaction moves forward in a timely manner; and
- When the defaulted loans eventually
are repaid, the Company may be able to seek future financings at
better terms.
About LMFA Financing LLCLM
Funding America, Inc., together with its subsidiaries, is a
technology-based specialty finance company that provides funding to
nonprofit community associations (Associations) primarily located
in the state of Florida, as well as in the states of Washington,
Colorado and Illinois by funding a certain portion of the
associations' rights to delinquent accounts that are selected by
the Associations arising from unpaid Association assessments.
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
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 some or
all of the debt may not be converted as described herein, 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 Finance Borqs Technologies,
Inc.sandra.dou@borqs.net www.borqs.com
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