STOCK TITAN
The best stock market news and trading tools all in one place—your must-have platform for investing success.
A must-have platform for stock market information, offering the best tools and updates to supercharge your trading.
Your trusted source for the best stock market news, trading tools, and expert advice. Everything traders need, in one place.

Borqs Technologies Completes $23 Million Private Placement to Support Growth

Rhea-AI Impact
(Moderate)
Rhea-AI Sentiment
(Neutral)
Tags
Rhea-AI Summary

Borqs Technologies, Inc. (Nasdaq: BRQS) has raised $15.3 million in convertible notes, bringing total sales to $23 million in 2021. The notes feature an 8% interest rate and a two-year term. The conversion price was set at $0.972 per share. Additionally, the company issued nearly 12 million warrants with varied exercise prices. Funds will support customer orders and the development of 5G products, as well as investments in the Huzhou 5G Project for R&D and manufacturing. The company reported a recovery in business activities following the COVID-19 impact in 2020.

Positive
  • Raised a total of $23 million in convertible notes to support business operations.
  • Engaging new customers as business activities recover from COVID-19 impact.
  • Investment in Huzhou 5G Project for R&D and manufacturing enhances future growth.
Negative
  • None.

SANTA CLARA, Calif., May 07, 2021 (GLOBE NEWSWIRE) -- 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 Information
This 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 Dou
VP of Corporate Finance
Borqs Technologies, Inc.
sandra.dou@borqs.net   
www.borqs.com


FAQ

What is the total amount Borqs Technologies raised in convertible notes as of May 2021?

Borqs Technologies raised a total of $23 million in convertible notes as of May 2021.

What is the conversion price for Borqs Technologies' convertible notes?

The conversion price for the convertible notes was set at $0.972 per share.

What will the proceeds from the convertible notes be used for?

The proceeds will be used for customer orders, development of 5G products, and investment in the Huzhou 5G Project.

How much interest will Borqs Technologies pay on the convertible notes?

Borqs Technologies will pay an annual interest rate of 8% on the convertible notes.

What is the impact of the COVID-19 pandemic on Borqs Technologies' business?

Borqs Technologies reported a recovery in business activities in 2021 after the decline due to the COVID-19 pandemic in 2020.

Borqs Technologies, Inc.

NASDAQ:BRQS

BRQS Rankings

BRQS Latest News

BRQS Stock Data

6.28M
6.42M
0.17%
Software - Application
Technology
Link
Hong Kong
Kwun Tong