Borqs Technologies, Inc. signed term-sheet for strategic alliance with China Health Industries Holdings, Inc. for development...
June 18 2020 - 8:00AM
Borqs Technologies, Inc. (Nasdaq: BRQS), (the “Company”, or
“BRQS”), a global leader in embedded software and products for the
Internet of Things (IoT) industry, today announced that the Company
has signed a non-binding term-sheet on June 16, 2020 with China
Health Industries Holdings, Inc. (OTCQB: CHHE) where CHHE intends
to purchase up to $12 million of BRQS ordinary shares at the market
price and warrants which have a two-year term and are exercisable
at a premium of 25% above the sales price of the ordinary
shares. BRQS intends to use the proceeds of the CHHE
investment for working capital and to form a new joint-venture
subsidiary with CHHE particularly for the development and the
procurement of mobile connected medical IoT products based on
Qualcomm’s 5G technology.
According to a research report supported by
Qualcomm Technologies, Inc. and the Tusher Center for Intellectual
Capital of the Haas School of Business at University of California
at Berkeley, “the effect of 5G on the health care sector, its
suppliers, and on sectors that use health care, will be
substantial. IHS Markit calculates that the sales enabling effect
of 5G will be over $1.1 trillion. 5G will have a large impact on
the quality of health care received by hundreds of millions of
patients and will fuel significant changes in the way in which
health care is delivered.”*
China Health Industries Holdings, Inc., through
its wholly owned subsidiary, Harbin Huimeijia Biotechnology Co.,
Ltd. (“HHMJ Biotech”) engages in R&D, manufacturing and
distribution of medical devices, drugs and health products in China
licensed by the China Food and Drug Administration. HHMJ
Biotech is also registered with the U.S. Food and Drug
Administration as a manufacturer of surgical apparel accessories,
protective clothing and shields, particularly contributing to the
containment of the current COVID-19 pandemic. Both Borqs and
CHHE are envisioning huge and new markets for connected medical IoT
products and applications based upon the ultra-high speed 5G mobile
technology.
The transaction is subject to the signing of
definitive documents within the next several weeks.
*Reference: 5G Mobile: Impact on the Health Care
Sector, by David J. Teece, Tusher Center for Intellectual Capital,
Institute for Business Innovation, Haas School of Business, U.C.
Berkeley, October 26th, 2017.
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.
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 the transactions with China Health
Industries Holdings, Inc. described in this press release or
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.
Investor Contact:
Sandra DouDirector of FinanceBorqs Technologies,
Inc.sandra.dou@borqs.net
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