Business
Sonim Announces Equity Transaction to Drive Growth and Expand Addressable Market
Entering Larger Semi-Rugged and Industrial 5G Growth Markets Peter Liu to Become Chief Executive Officer AUSTIN, Texas, April 14, 2022 /PRNewswire/ -- Sonim
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[{"type":"text","content":"Entering Larger Semi-Rugged and Industrial 5G Growth Markets\nPeter Liu to Become Chief Executive Officer\nAUSTIN, Texas, April 14, 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 it has entered into a subscription agreement with U.S.-based AJP Holding Company, LLC (\"AJP\") whereby, subject to the terms thereof, AJP will purchase a total of 20.8 million shares at a price of $0.84 per share and an aggregate purchase price of $17.5 million. Upon completion of the transaction, which is subject to stockholder approval and other customary closing conditions, AJP will own approximately 52% of Sonim's post-transaction outstanding capital stock based on an estimated 19.3 million shares outstanding prior to the transaction.\n\n \n \n \n \n \n \n\n \nThe agreement with AJP will also include a transition of the management team as Sonim embarks on a strategy to 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.\nPeter Liu, who has served as Executive Vice President for Global Operations and Engineering since 2010, has been appointed Chief Executive Officer, effective April 14, 2022. Liu is part of the investment group at AJP and leading the strategic development of Sonim's expanded market focus.\n\"Sonim's deep relationships with all of the Tier One mobile carriers in North America provide an excellent launching point on which to bring a wider array of 5G semi-rugged and industrial devices to market,\" said Liu. \"We believe Sonim can become the top middle market rugged and industrial device provider in North America, offering a wider range of 5G smartphones, feature phones, mobile hot spots and other industrial communications equipment that incorporate our rugged heritage. Our expanded ODM relationships will at the same time help us accelerate new products, reduce development and manufacturing cost and maximize the v...