Borqs Technologies (NASDAQ: BRQS) stock should jump 1,200% at the open today. The odd thing here is that this might not actually be enough to solve the problem that BRQS stock is trying to fix.For this is of course, a technical fix, designed to solve a specific technical problem. We think that it’s possible that this fix won’t in fact do so. Which is a bit of a pity and more than slightly embarrassing for the management.
As to what’s done at Borqs: “Borqs Technologies, Inc. provides Android-based smart connected devices and cloud service solutions in the United States, India, China, and internationally. It offers commercial grade Android platform software and service solutions to address vertical market segment needs through the targeted BorqsWare software platform solutions. The company’s BorqsWare software platform consists of BorqsWare Client software that has been used in Android phones, tablets, watches, and various Internet-of-things devices;” And so on. This is mostly aimed at India these days. There’s also a subsidiary involved in solar panel systems in Hawaii and CA but the anti-spies people are making them sell that.
Borqs Technologies stock price from Google Finance
The specific problem bein solved today though is the $1 minimum bid price requirement to maintain the Nasdaq listing. This is just one of those things, a fashion almost, on hte American markets. Penny stocks are considered not quite right, therefore you can’t remain a penny stock and also remain on the main markets. That’s easy enough to fix. Simply declare that 12 old shares are now one new one - a one for 12 reverse stock split: Borqs Technologies, Inc. (BRQS) will effect a one-for-twelve (1-12) reverse split of its Ordinary Shares. The reverse stock split will become effective on Tuesday, October 10, 2023.
This though is where it become a little embarrassing. This was announced in Sept 29th, when the BRQS stock price was some 18 cents. The post split price would be well over $2, they’re fin. But since the decision and announcement the Borqs stock price hsa fallen to 8.5 cents. Giving a post reverse split price of $1.02. Which might well not be enough to maintain that $1 minimum over time. As we say, slightly embarrassing.
Still, the important thing to grasp about today’s 1,200% rise is that it is purely nominal, this is not a change in the real price of the company at all. No wallets will get fatter as a result of this.
