BRQSW - BRQSW STOCK NEWS

Borqs Technologies, a global provider of 5G wireless and IoT solutions, reported strong financial results for 2022. Revenues increased by 77.7% YoY to $52.5 million, driven by increased IoT hardware sales and software service revenues. Gross profit increased by 326.6% to $11.1 million, with a gross margin of 21.2%. Adjusted EBITDA reached $4.8 million, a 138% increase compared to the previous year. The company must divest its ownership in Holu Hou Energy, LLC (HHE) as mandated by CFIUS.

Borqs Technologies has engaged Cantor Fitzgerald as its exclusive financial advisor for the divestment of its ownership in Holu Hou Energy. Cantor Fitzgerald will conduct a sales process and has started reaching out to potential acquirers. HHE's solar energy storage system provides resilience and energy security to residential and commercial units. Borqs is required to divest its interests in HHE due to national security risks.

Borqs Technologies, Inc. has received a notification from Nasdaq stating that it has not regained compliance with the minimum bid price requirement for continued listing. The company has engaged Donohoe Advisory Associates LLC to request a hearing to stay the suspension or delisting action. The company's shares are expected to remain listed until a decision is made by the Panel.

On April 26, 2023, Borqs Technologies announced a divestment of its stake in Holu Hou Energy, LLC (HHE) following concerns raised by the Committee on Foreign Investment in the United States (CFIUS) about national security risks. CFIUS mandated the divestment due to HHE's proximity to U.S. military assets. Borqs has engaged the investment bank Cantor Fitzgerald & Company to facilitate this process, which must be completed by September 2023, though a six-month extension may be requested. HHE has recently secured significant contracts in Hawaii, potentially leading to substantial proceeds from the divestment. This move is expected to enhance Borqs' liquidity and may allow for share buybacks. The company plans to pursue further growth opportunities in IoT and AI sectors post-divestment.

Borqs Technologies, Inc. (Nasdaq: BRQS) announced that its subsidiary, Holu Hou Energy LLC, secured a significant contract with Lendlease to install solar and energy storage systems in Honolulu, Hawaii. This project, valued in the nine figures, will enable multiple residential units to share excess solar energy in real time, potentially meeting 75-80% of energy needs without exporting to the grid. Initial planning began in 2021, and pilot results were promising, with efficient energy sharing among connected homes. The project aims to provide military families with enhanced services and reliable backup power while reducing the electric grid load in Oahu. Construction is set to start in summer 2023, marking a major step for Holu Hou Energy's growth and Borqs' strategic goals.

Borqs Technologies, Inc. (Nasdaq: BRQS) announced the appointment of Donald R. Kendall, Jr. as Trustee to a divestment trust for managing the sale of its solar subsidiary, Holu Hou Energy, LLC (HHE), as mandated by CFIUS. With over 40 years in investment management, Kendall's experience includes leading the sale of SolarCity to Tesla for $2.6 billion. CEO Pat Chan expressed confidence in Kendall's ability to oversee the sale, which is expected to enhance liquidity and shareholder value. HHE has shown significant growth in Hawaii's solar market since Borqs acquired it in 2021, demonstrating its potential expansion into California and beyond.

Borqs Technologies (Nasdaq: BRQS) announced its entry into the two/three-wheel automotive market with the development of a smart cluster dashboard, showcased at the January 2023 CES Exhibition. This innovative unit connects to the internet via cellular networks and features functionalities like mobile telephony, vehicle diagnostics, and location services. Partnering with Faspro Systems for sales and deployment, Borqs aims to diversify its revenue streams in the growing Taiwanese market, which has 14.38 million registered motorcycles. The overall motorcycle market is projected to reach $530 billion by 2030.

Borqs Technologies, Inc. (Nasdaq: BRQS) has secured a contract with a major North American company to create an Android 5G rugged waterproof handheld device. Designed for extreme environments, this device will support various industries, including agriculture and mining, and is expected to function reliably in rain and snow. The device will incorporate a long-life 5G chipset usable until 2030 and will initially launch in North America and Europe. Borqs aims to expand its portfolio of enterprise-class rugged devices, showcasing its capabilities in IoT and 5G technologies.

Borqs Technologies, Inc. (Nasdaq: BRQS, BRQSW) reported preliminary revenues for the year ended December 31, 2022, expecting totals between $53 million to $58 million, a 79% increase from $29.6 million in 2021. This growth is driven by rising IoT sales (over 80% of total revenue) and significant contributions from its solar energy storage subsidiary, Holu Hou Energy (HHE). Borqs is negotiating to divest HHE, a top solar supplier in Hawaii, and has secured $60 million in contracts, with a pipeline nearing $500 million. The divestiture aims to enhance shareholder value and generate cash for potential acquisitions.