Borqs Technologies Completes $16 Million Strategic Funding For Growth of its Solar Software/Hardware Solution Plus Energy Storage Business in the U.S.
June 02 2022 - 9:00AM
Borqs Technologies, Inc. (Nasdaq: BRQS, “Borqs”, or the “Company”),
a global provider of 5G wireless solutions, Internet of Things
(IoT) solutions, and innovative clean energy, with global
operations in the U.S., India and China, today announced that it
has received strategic funding of $16 million for growth of its
solar plus energy storage business in the markets outside of Hawaii
particularly in California, and also for development of 5G mobile
devices. The investment reflects the recognition of the Company’s
ESG strategy by the investors and will further strengthen and
reinforce the Company’s growth.
The majority of this financing is led by TDR
Capital Pty Limited, a private equity fund in Australia that
focuses on emerging companies in various industries including
solar. The funds raised will be used mainly for expansion of the
Company’s subsidiary, Holu Hou Energy LLC’s (HHE) business in
mainland U.S., starting with California, including participation in
power purchase agreements (PPA), which is the financing structure
usually associated with multiple-unit residential solar solutions.
Investors/owners of the PPA pay for the installation of complete
hardware and software systems and receive utility usage payment
streams directly from residents for up to 20 years, as well as
enjoy significant income tax credits from the U.S. federal
government. Participating in the PPA may generate recurring revenue
for the Company in the cases where utility rates are high enough to
offer favorable margins from our solar+storage solutions. Recent
global events have significantly bumped up electricity rates in
densely populated areas such as Northern and Southern
California.
HHE, the Company’s solar subsidiary, has
propriety technology to allow sharing of power at the direct
current (DC) level which allow significant savings in hardware
costs among the multiple residents as compared to single family
users. Our energy-sharing model can greatly increase ROI for
multi-family property owners while reducing hardware installation
costs. To view a video clip of a HHE’s recent completed project, go
to https://www.youtube.com/watch?v=kakbynGM-fQ
HHE has unique product offerings specifically
for the multifamily residential market with proprietary software
that intelligently manages energy-sharing among residents of
multifamily properties. Based on the report produced by FreddieMac,
the multifamily market has grown into record-breaking levels in
2021, and is expected to remain strong nationwide in 2022. (Ref:
https://mf.freddiemac.com/research/outlook/2022-0107-2022-multifamily-outlook)
For details on the terms of the fundraise,
please see the Company’s 6-K filing with the SEC.
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, and is also currently in development of 5G products for
phones and hotspots. The Company acquired controlling shares of the
solar energy storage system entity, Holu Hou Energy LLC, in October
2021.
About Holu Hou Energy, LLCHolu
Hou Energy, LLC, a Delaware Corporation, brings state-of-the-art
renewable energy and energy storage systems to the Single-Family
Residential, Multi-Dwelling Unit Residential and Commercial
building markets. With operations in California, Hawaii, Wisconsin
and Shanghai, HHE engineers proprietary storage system and control
platform solutions, including a breakthrough “HHE Energy Share”
technology that is key to development of the Multi-Dwelling Unit
Residential housing market. HHE is a vital partner for investors
and asset owners that are seeking ESG solutions. For more
information, visit www.holuhou.com
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 “forecasts”, “expects”, “believes”,
“anticipates”, “intends”, “estimates”, “predicts”, “seeks”, “may”,
“might”, “plan”, “possible”, “should”, “estimates” 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 are 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 may not truly describe
the financial conditions, including the possibility that the
positive financial results from business activities as described
herein may not be reached or at all, and the negative impact of the
COVID-19 pandemic 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 DouVice President of Corporate
FinanceBorqs Technologies,
Inc.sandra.dou@borqs.netwww.borqs.com
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