Borqs Technologies, Inc. Completes Due Diligence Process for US$150 million Line of Credit Offer
SANTA CLARA, Calif., May 04, 2020 (GLOBE NEWSWIRE) -- Borqs Technologies, Inc. (Nasdaq: BRQS), (the “Company”, or “Borqs”), a global leader in embedded software and products for the Internet of Things (IoT) industry, today announced that the Company has completed the due diligence process as requested by the lenders of a line of credit up to US$150 million (see Company release on April 13, 2020) for working capital needs for the Company’s customer pre-orders forecasted at over US$100 million. The line of credit will become available upon the final approval procedures of the lenders based on the pre-orders received by the company.
The funds will be primarily used for the procurement of orders including 1) a hi-tech mobile personal safety and tracking device for a US electronics retail chain which Borqs has begun delivering since 2019 with over 140,000 units to date, and demand for the remainder of 2020 is expected to be two to three times higher than last year due to the current COVID-19 environment, 2) a sizable order for a kids smartwatch from a US top-tier mobile operator that can be linked to the parent’s smartphone for real-time location tracking and geofencing, 3) a mobile point-of-sale machine with state-of-the-art security features for an India multinational conglomerate, and 4) a super ruggedized industrial use smartphone for a German customer particularly for hazardous environments in the petrochemical and mining industries that meets Google’s sophisticated Android Enterprise Recommended (AER) validation. The tracker and the smartwatch are particularly in demand due to the heightened safety alertness of consumers in the current pandemic environment.
The orders are for mobile and IoT devices with Borqs’ embedded software scheduled for delivery beginning near the end of the 2nd quarter of 2020 and extending into the year 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 solutins provider leveraging its strategic chipset partner relationships as well as its broad software and IP portfolio.
According to an article by InSight Success (https://www.insightssuccess.com/borqs-leader-in-android-based-products-solutions-for-iot/): “Borqs has strategic relationship with the leading chipset vendors like Intel and Qualcomm that has helped Borqs to have an early & deep understanding of the chipset capabilities to deliver leadership innovation to targeted IoT devices…..Their diversified customer base includes mobile chipset manufacturers, mobile device OEMs and mobile operators. This includes more than six mobile chipset manufacturers (Intel, Qualcomm, Marvell, et al.,) and 29 connected device OEMs (LGE, Micromax, Acer, Motorola, Vizio, etc.) in 11 countries with BorqsWare solutions embedded in approximately more than 15 million units worldwide.” The article further says: “Borqs has Android based platforms optimized for different category of devices & cloud services platform for IoT. Borqs is a prime deliverer of end-to-end capabilities across ideation, design, development, production, connectivity services and distribution. Their software IP and enhancements provide the ability to rapidly deliver customized and premium user experiences, and they have the ability to accelerate monetization of IP in hardware and firmware through proprietary modules.”
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.
Visit us at: www.Borqs.com
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 the Company will not consummate its previously announced line of credit transaction on terms favorable to the Company or at all, the possibility that the Company may not receive actual orders in the amounts forecasted, the possibility that the Company may not be able to deliver its wearable device to satisfy the increased demand forecasted, 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.