SANTA CLARA, Calif., June 18, 2020 (GLOBE NEWSWIRE) -- 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.