AJP and Orbic urge Sonim stockholders to vote for new board slate

NEW YORK - AJP Holding Company and Orbic North America, which together hold approximately 19% economic interest in Sonim Technologies (NASDAQ:SONM), have sent an open letter to Sonim stockholders urging them to vote for their slate of director nominees at the upcoming July 18 annual meeting. The proxy fight comes as Sonim faces significant challenges, with InvestingPro data showing the company’s overall financial health score at a weak 1.42 out of 5.

In the letter issued Wednesday, the investors criticized Sonim’s board for rejecting what they described as a superior acquisition offer that would have delivered "an immediate and substantial premium" to stockholders. They claim their revised offer represents a 66.7% premium over the initial closing amount payable in the Social Mobile transaction that Sonim’s Special Committee is pursuing.

The investors expressed frustration with Sonim’s lack of engagement regarding their proposal, stating the company refused discussions citing exclusivity granted to Social Mobile. They also noted that Sonim has not signed definitive agreements with Social Mobile despite announcing a letter of intent over a month ago.

AJP and Orbic highlighted Sonim’s stock performance, stating shares have declined approximately 74.94% over the three-month period ending July 3. They also criticized a recent stock offering of 7.4 million shares at $0.75 each as "dilutive" and claimed it caused the stock price to drop approximately 38%. InvestingPro data confirms the company’s challenging position, with the stock trading at $0.68, near its 52-week low of $0.60, and showing a -87.3% return over the past year. The company is currently burning through cash rapidly, with negative free cash flow of $18.11 million in the last twelve months.

The investors are urging stockholders to vote for their five nominees - Douglas Benedict, Joseph Glynn, Gregory Johnson, Surendra Singh, and Michael Wallace - on the blue proxy card.

According to the press release statement, Orbic is a New York-based technology company that develops and manufactures mobile solutions including smartphones, tablets, mobile hotspots, and connected laptops. For deeper insights into Sonim’s valuation metrics and 17 additional key ProTips that could impact your investment decision, visit InvestingPro.

In other recent news, Sonim Technologies has announced a strategic decision to reject an unsolicited acquisition offer from Orbic North America, favoring a transaction with Social Mobile instead. The company’s Special Committee determined that Social Mobile’s proposal to purchase Sonim’s operating assets offers greater value and certainty. Meanwhile, Sonim has priced a public offering of 7.4 million shares at $0.75 per share, expected to raise approximately $5.55 million. The proceeds are intended to support Sonim’s business strategy, including potential debt repayment and refinancing.

Additionally, Sonim is progressing with plans for a reverse takeover with a private U.S. company specializing in Nvidia-based High-Performance Computing AI factories. Shareholders are expected to receive equity ownership in the combined entity, valued at $17.5 million. This transaction requires several approvals, including from Sonim’s stockholders and Nasdaq. Roth Capital Partners is acting as the exclusive placement agent for the public offering. Sonim continues to navigate the competitive landscape of rugged mobile solutions while seeking to enhance its strategic direction through these developments.

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