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NEW YORK - AJP Holding Company and Orbic North America, which together hold a 19% stake in Sonim Technologies (NASDAQ:SONM), have called for a complete leadership change at the struggling mobile technology company ahead of its July 18 annual meeting. The company, currently valued at approximately $20 million, shows a "WEAK" overall financial health score according to InvestingPro analysis.
In an open letter to stockholders Thursday, the investors highlighted Sonim’s financial challenges, including a $33.65 million net loss in 2024 and an 87% stock price decline that same year. They noted the company has reported cumulative losses of $86.45 million from 2021-2024, with stock value dropping 98% over the five years ended June 20, 2025. The company’s current financial metrics support these concerns, with a negative EBITDA of $26.4 million and a concerning current ratio of 0.78, indicating potential liquidity issues. InvestingPro data reveals 18 additional key financial indicators that could help investors better understand the company’s challenges.
The investors are nominating five director candidates to replace the current board, claiming the incumbent leadership has engaged in entrenchment tactics including implementing a poison pill, conducting dilutive stock offerings, and enhancing severance benefits for executives.
AJP and Orbic also questioned Sonim’s strategic direction, particularly its proposed asset sale to Social Mobile and a potential reverse takeover transaction with an unnamed company. They argued these deals lack sufficient detail about potential stockholder returns.
As an alternative, Orbic has made a revised offer to acquire Sonim’s assets for $25 million in cash, which they claim represents a 66.7% premium over Social Mobile’s initial closing payment. Based on InvestingPro’s Fair Value analysis, Sonim’s current market price suggests the stock is slightly overvalued, making the premium offered particularly noteworthy for shareholders.
The investors urged stockholders to vote for their slate of nominees, stating that "only through an immediate and dramatic transformation in leadership will Sonim and its stockholders see meaningful positive change."
The information in this article is based on a press release statement from AJP Holding Company and Orbic North America.
In other recent news, Sonim Technologies announced a non-binding Letter of Intent for a reverse takeover with a private U.S. company specializing in Nvidia-based High-Performance Computing AI factories. This transaction would allow Sonim stockholders to retain equity valued at $17.5 million, while the target company is valued at approximately $300 million. Additionally, Sonim confirmed receiving an unsolicited proposal from DOOGEE to acquire all outstanding shares for $3.60 per share in cash, though the Special Committee requires more information to evaluate this offer. Meanwhile, Sonim has signed a Letter of Intent with Social Mobile for the sale of its assets, potentially valued at up to $20 million, including a $5 million earn-out. Orbic North America has also proposed acquiring Sonim’s assets for $25 million, backed by a $50 million financing commitment. However, Sonim’s Board has expressed concerns about Orbic’s financial condition and strategic consistency. Sonim is pursuing these strategic alternatives amid a proxy contest initiated by Orbic, who has nominated five director candidates for Sonim’s upcoming Annual Meeting. The company is focused on maximizing shareholder value and advancing its technology offerings through these developments.
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