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SANTA CLARA, Calif., Nov. 20, 2024 (GLOBE NEWSWIRE) -- Borqs Technologies, Inc. (U.S. OTC: BRQSF, “Borqs” or the “Company”) a global provider of embedded software and products for the Internet of Things (IoT) announced on November 11, 2024, that the Company intends to sell its hardware and software business to Sasken Technologies, Inc. by the end of this calendar year. The total consideration, inclusive of earn-outs, management incentives, and other payouts, shall not exceed US$40 million. Earnouts will be linked to performance of target entities in 2024 and 2025.
As a result of this strategic transaction, Borqs will have a clean and debt-free capital structure, providing a solid foundation for future growth. As Borqs currently does not have any outstanding dilutive instruments convertible into equity, the Company can leverage on the cash consideration that it receives from the sale transaction to invest into activities that can deliver healthy margins and sound financial results.
As of the date of this release, there are 28.97 million outstanding shares of the Company with approximately 16.47 million shares in the public float; and there are no options or warrants outstanding. Post transaction, the Company plans to reduce administrative overhead to a minimum and the Company may also consider a buy-back of shares from the open market.
“With a clean balance sheet with practically no liabilities, we plan to utilize the cash to acquire a new business or invest in a high-growth opportunity especially in AI and blockchain technologies, potentially providing a new revenue stream and increasing investor confidence. In this current economic situation, there are plenty of opportunities that can bring value to our shareholders. Our company's shares may present an attractive investment opportunity, given our solid financial foundation and promising outlook,” said Pat Chan, Chairman & CEO of Borqs.
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.