Business
Sonim Closes $3.85 Million Growth Capital Transaction Priced 126% Above Market
Equity Transaction Supports Accelerated Growth via New Addressable Markets and Global Expansion San Diego, California--(Newsfile Corp. - April 29, 2024) -
About this update from Dna X, Inc.
[{"type":"text","content":"Equity Transaction Supports Accelerated Growth via New Addressable Markets and Global Expansion\nSan Diego, California--(Newsfile Corp. - April 29, 2024) - Sonim Technologies, Inc. (NASDAQ: SONM), a leading provider of mobility solutions that include ultra-rugged and rugged phones, connected devices, consumer durable mobile devices, and accessories designed to provide extra protection for users that demand more durability in their work and everyday lives, today announced that it has closed a growth capital investment of common stock and warrants with a single investor for an aggregate purchase price of $3.85 million. The transaction closed concurrently with the execution of the definitive agreement.\nThe investor purchased a total of 3.5 million shares at a price for each share and accompanying warrant of $1.10. The exercise price of each warrant is $1.10 per share of common stock. The price of the share and warrant represents a premium of 126% to Sonim's closing share price on April 26, 2024, the last full trading day prior to the consummation of the transaction. Sonim received the entirety of the offering proceeds and did not pay any placement agent, broker, or finder fee in connection with the offering.\nPeter Liu, Sonim's Chief Executive Officer, said: \"We are pleased to secure additional capital on favorable terms, fueling our 2024 expansion plans into adjacent and global markets where Sonim aims to take share.\n\"Our growth initiatives have quickly gained momentum, securing 13 new design awards in the last ten months, which will begin contributing to sales from this summer onward. We established a new team in Europe to expedite device qualification targeting opportunities that fill the void left by a competitor's exit, plus other global initiatives and design awards.\n\"Executing on this expansion strategy would propel Sonim from the legacy rugged device market, worth approximately $0.4 billion annually, into the expanding connected devices and consumer durable markets, which combined are valued at nearly $50 billion annually.\"\nSonim ended 2023 with $9.4 million in cash and equivalents and remained essentially debt free. The Company maintains a lean operating cost mentality and posted three consecutive quarters of positive GAAP net income in 2023.\nNot an Offer or Sale of Securities\nThis press release does not constitu...