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HAUPPAUGE, New York - AJP Holding Company, LLC, together with Orbic North America, LLC, announced its intention to nominate five candidates for the board of Sonim Technologies, Inc. (NASDAQ: SONM), a provider of ultra-rugged mobility solutions with a market capitalization of $11 million. According to InvestingPro data, the company currently trades below its Fair Value, despite maintaining more cash than debt on its balance sheet. The nominations are set for the upcoming 2025 Annual Meeting of Stockholders.
The move follows Orbic’s acquisition of a substantial position in Sonim shares from AJP, first disclosed on January 15, 2025. The candidates, with expertise in areas such as 4G/5G connected devices, technology, and operations, are proposed amid Sonim’s significant stock price decline of 67.5% over the past year and what AJP and Orbic consider to be the current board’s detrimental actions to stockholder interests. InvestingPro analysis reveals the company is quickly burning through cash, with a concerning gross profit margin of 21%.
The nominees include Douglas B. Benedict, EVP of Corporate Development at Orbic; Joseph M. Glynn, a former QUALCOMM executive; Gregory M. Johnson, CEO of Vintelligence; Surendra Singh, Chief Sales & Partnerships Officer at CoreStack; and Michael Wallace, a veteran of QUALCOMM.
AJP and Orbic assert that their nominees will better serve the interests of Sonim’s stockholders, employees, and customers by leveraging their combined experience to realize the company’s potential and maximize stockholder value.
This announcement comes after Sonim’s share price has reportedly fallen nearly 75% since AJP’s majority stake acquisition in 2022. AJP and Orbic have criticized Sonim’s issuance of new shares and the increase in company debt as factors contributing to the stock’s performance. InvestingPro subscribers have access to 15 additional key insights about Sonim’s financial health, including detailed analysis of its cash flow and profitability metrics.
Further information on the security holdings of Orbic and AJP in Sonim can be found in the Schedule 13D filed with the U.S. Securities and Exchange Commission on March 18, 2025. The definitive proxy statement and other relevant materials will be available on the SEC’s website and Orbic’s website once filed.
The information in this article is based on a press release statement.
In other recent news, Sonim Technologies has been actively pursuing strategic alternatives to enhance stockholder value, as confirmed by the company. This initiative includes the completion of additional financing intended to support the company’s independent operations. In a separate development, Sonim Technologies secured a $3.3 million financing deal with Streeterville Capital, LLC, which will provide the company with necessary capital for ongoing operations and strategic initiatives. The agreement includes specific covenants and a "most favored nation" clause, ensuring favorable terms for the lender.
Additionally, Sonim Technologies announced executive compensation changes with the grant of restricted stock units (RSUs) to 97 employees, including key executives. This move aims to retain talent and incentivize performance, with vesting contingent on continued employment. The RSUs are part of the 2019 Equity Incentive Plan, aligning employee interests with those of shareholders. These recent developments reflect Sonim Technologies’ efforts to navigate its strategic path and strengthen its operational framework.
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