An unknown buyer entered into Divestment Trust Agreement to acquire 49% stake in Holu Hou Energy LLC from Borqs Technologies, Inc. (NasdaqCM:BRQS) on March 20, 2023. Borqs Technologies will divest its interests in Holu Hou Energy. HHThe transaction is subject to the US government approval. The divestment, when completed, is expected to provide a large liquidity position to Borqs, and management may seek approval from the Board of Directors to allocate an appropriate amount for buy back of our outstanding ordinary shares from the market.
According to CFIUS?s timing of the divestment, Borqs is required to complete the sale of the HHE by September of this year and if approval by CFIUS is granted, there can be a possible extension of another 6 months. As on September 11, 2023, Committee on Foreign Investment in the United States (CFIUS) has granted the Company an extension from the original deadline of September 15, 2023 to January 1, 2024 to complete the divestment. The transaction is now expected to close by end of 2023. Cantor Fitzgerald & Company acted as financial advisor to Borqs Technologies. Yu Certified Public Accountant P.C. is acting as an accountant to Borqs Technologies in the transaction.