Strategic Investment Driving Expansion Into
Larger Semi-Rugged and Industrial 5G Growth Markets
AUSTIN,
Texas, Aug. 9, 2022 /PRNewswire/ -- Sonim
Technologies, Inc. (Nasdaq: SONM) ("Sonim" or the
"Company"), a leading U.S. provider of ultra-rugged mobile
devices, accessories, and solutions designed specifically for task
workers physically engaged in their work environments, today
announced that on August 8, 2022, it
closed the second tranche of its subscription agreement with
U.S.-based AJP Holding Company, LLC ("AJP") whereby AJP has now
purchased an aggregate of $17.5
million in Sonim equity at a price of $0.84 per share.
The second closing included approximately 5.9 million shares of
Common Stock for an aggregate purchase price of $5.0 million in gross proceeds. The first
closing, completed in July 2022,
included the purchase of approximately 14.9 million shares of
Common Stock for an aggregate purchase price of $12.5 million. Upon completion of the
transaction, which was approved by stockholders at a special
meeting held on June 28, 2022, AJP
and its affiliated parties together own approximately 52% of
Sonim's post-transaction outstanding capital stock based on an
estimated 19.3 million shares outstanding prior to the
transaction.
The agreement with AJP supports a new strategy whereby Sonim
will expand from its core market in ultra-rugged mobile devices
into the larger and faster growing semi-rugged and industrial 5G
markets. This enhanced strategy proposed by AJP is expected to
drive revenue growth, increase operating efficiency, accelerate
ODM-based product development at lower cost and broaden Sonim's
addressable market opportunities.
Advisors
B. Riley Securities, Inc. is serving as financial advisor to
Sonim Technologies in the transaction and O'Melveny & Myers LLP
is serving as legal counsel to the Company. Venable LLP is serving
as counsel to AJP.
About Sonim Technologies, Inc.
Sonim Technologies is a leading U.S. provider of ultra-rugged
mobile phones and accessories designed specifically for task
workers physically engaged in their work environments, often in
mission-critical roles. We currently sell our ruggedized mobility
solutions to several of the largest wireless carriers in the United
States— including AT&T, T-Mobile and Verizon—as well as the
three largest wireless carriers in Canada—Bell, Rogers and Telus
Mobility. Our phones and accessories connect workers with voice,
data and workflow applications in two end markets: industrial
enterprise and public sector. Our ruggedized phones and accessories
are sold through distributors in North
America, South America and
Europe. For more information,
visit www.sonimtech.com.
Important Cautions Regarding Forward-Looking
Statements
This release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995, as
amended. These statements relate to, among other things, the
timeframe and completion of the second closing, the outcome of the
new strategy of Sonim, the expected timing of the launch of Sonim's
next generation of products, Sonim's review of strategic
alternatives, the market acceptance of new products. These
forward-looking statements are based on Sonim's current
expectations, estimates and projections about its business and
industry, management's beliefs and certain assumptions made by
Sonim, all of which are subject to change. Forward-looking
statements generally can be identified by the use of
forward-looking terminology such as, "future", "believe," "expect,"
"may," "will," "intend," "estimate," "continue," or similar
expressions or the negative of those terms or expressions. Such
statements involve risks and uncertainties, which could cause
actual results to vary materially from those expressed in or
indicated by the forward-looking statements. Factors that may cause
actual results to differ materially include, but are not limited
to, the following: Sonim's ability to continue as a going concern
and improve its liquidity and financial position; Sonim's
exploration of strategic or financial alternatives may not result
in any transaction or alternative that enhances value; risks
related to Sonim's ability to comply with the continued listing
standards of the Nasdaq Stock Market and the potential delisting of
Sonim's common stock; Sonim's ability to continue to develop
solutions to address user needs effectively, including its next
generation products; anticipated sales levels of both new and
legacy products; Sonim's reliance on its channel partners to
generate a substantial majority of its revenues; the limited
operating history in Sonim's markets; Sonim's ongoing restructuring
and transformation of its business; the variation of Sonim's
quarterly results; the lengthy customization and certification
processes for Sonim's wireless carries customers; the impact of the
COVID-19 pandemic; and the ongoing Securities and Exchange
Commission investigation on Sonim's business, as well as the other
risk factors described under "Risk Factors" included in Sonim's
Annual Report on Form 10-K for the year ended December 31, 2021, and Form 10-Q for the
quarter ended March 31, 2022, and any
risk factors contained in subsequent quarterly and annual reports
it files with the Securities and Exchange Commission (available at
www.sec.gov). Sonim cautions you not to place undue
reliance on forward-looking statements, which speak only as of the
date hereof. Sonim assumes no obligation to update any
forward-looking statements in order to reflect events or
circumstances that may arise after the date of this release, except
as required by law.
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SOURCE Sonim Technologies, Inc.