Borqs Technologies Completes $23 Million Private Placement to Support Growth
May 07 2021 - 9:00AM
Borqs Technologies, Inc. (Nasdaq: BRQS, the “Company”), a global
provider of embedded software and products for the Internet of
Things (IoT), reported today that the Company has completed sales
of $15.3 million in convertible notes to institutional and
individual investors as of May 5, 2021, which in addition to $7.7
million sold to the same investors in February and April, totaled
$23 million. The notes have a two-year term and an annual interest
rate of 8%. The conversion price was reset to $0.972 per share,
which was 90% of the closing price on the day effectiveness of
registration was declared. The Company also issued 11,695,906
five-year warrants with an exercise price of $2.222 per share and
2,521,008 five-year warrants with an exercise price of $1.540 per
share. The shares underlying the notes and warrants were registered
for resale in the Company’s registration statement on Form F-1.
Proceeds will be used for the procurement of orders the Company
expects to receive from its existing customers and new customers
this year and also for development of the next generation 5G
products. The Company is experiencing a recovery of business
activities in 2021 from the COVID-19 effected levels of 2020, and
is engaging new customers. The proceeds will also be used to invest
into the Borqs “Huzhou 5G Project” for a R&D center and
manufacturing facilities to be completed within the second calendar
quarter of 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.
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 InformationThis press release may include
“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 expected use of proceeds. The
reader is also 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 DouVP of Corporate FinanceBorqs Technologies,
Inc.sandra.dou@borqs.net www.borqs.com
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