Shares of Borqs Technologies (NASDAQ:BRQS) soared more than 1,000% in pre-market trading after BRQS stock completed a 1-for-16 reverse split today. The company develops solutions for Android-based smart connected devices, cloud services and clean energy.
As a result of the split, the number of shares of the stock were divided by 16. Consequently, their price (before factoring in any change in their value caused by investors’ actions) was multiplied by 16.
So, an investor who owned 16,000 shares of Borqs as of Friday morning, when the shares were trading for 15 cents each, had $2,400 of BRQS stock at that time. As of Monday morning, the investor has only 1,000 shares of Borqs. At today’s pre-market price of $2.14, their shares were worth $2,140, or $260 less than on Friday morning.
Other News About BRQS Stock
On June 2, the company announced in a press release that it had obtained $16 million of “strategic funding.” The company said it would use the funds to increase the size of its “solar plus energy storage business in the markets outside of Hawaii particularly in California, and also for development of 5G mobile devices.” Borqs reported it had obtained most of the funds from an Australian private equity fund called TDR Capital Pty Limited.
In the same press release, Borqs noted it would take part in power purchase agreements, a means of generating funds typically used by firms in the solar sector.
On June 24, Borqs CEO Pat Chan said in a statement:
“Our ESG strategy toward building products for 5G, IoT and solar are gaining a lot of tractions … The recent strategic investment of $16 million from strategic investors for growing of our solar plus energy storage business is a good demonstration of our investors’ confidence in our business.”
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On the date of publication, Larry Ramer did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.