Borqs Technologies, Inc. (NasdaqCM:BRQS) signed a letter of intent to acquire 60% stake in Shanghai KADI Machinery Technology Co., Ltd. for $15 million on January 8, 2018. Borqs Technologies, Inc. proposed acquisition involved $15 million in cash and shares distributed over three years comprising of $11.7 million in cash to be paid to KADI in 2018 and 2019 for working capital and purchases of equipment, and $3.3 million in Borqs’ ordinary shares to be issued to the selling owners of KADI based on achievement of net income targets for the years 2018, 2019 and 2020. Borqs Technologies, Inc. intend to use part of the net proceeds from the offering for the acquisition of a controlling stake in Shanghai KADI Machinery Technology Co., Ltd.