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SAN DIEGO - Sonim Technologies, Inc. (NASDAQ:SONM), currently trading at $0.93 and down nearly 89% over the past year according to InvestingPro data, confirmed Monday that its Special Committee of the Board of Directors has received an unsolicited proposal from DOOGEE to acquire all outstanding Sonim shares for $3.60 per share in cash.
The Special Committee, which oversees Sonim’s strategic alternatives process, stated it currently lacks sufficient information to properly evaluate DOOGEE’s June 9 proposal. The committee requires detailed information about DOOGEE’s financing arrangements, strategic rationale, and ability to execute the transaction amid potential regulatory constraints.
"This unsolicited indication of interest underscores the market’s recognition of the underlying value of Sonim and its business," said Mike Mulica, Chair of the Special Committee. "While we welcome the interest, our priority is to remain focused and disciplined in our process."
The committee noted that DOOGEE’s willingness to wait for the expiration of Sonim’s existing exclusive letter of intent (LOI) is "neither conventional nor constructive" for pursuing a transaction with a public company. Sonim’s Special Committee remains focused on advancing its current LOI toward a definitive agreement and reverse takeover.
Sonim, a provider of rugged mobile solutions including phones and wireless internet devices with a market capitalization of $8.56 million and annual revenue of $58.24 million, plans to file a proxy statement with the SEC in connection with the proposed transaction. InvestingPro analysis indicates the company faces challenges with weak gross profit margins of 20.45% and significant cash burn.
The announcement contains forward-looking statements subject to various risks and uncertainties, including the possibility that conditions to closing may not be satisfied, potential litigation, and the risk that the proposed transaction might not be completed on the terms reflected in any definitive agreement. While analysts maintain an $8 price target, InvestingPro subscribers have access to 15+ additional exclusive insights about Sonim’s financial health and market position.
This article is based on a press release statement from Sonim Technologies.
In other recent news, Sonim Technologies has announced a Letter of Intent for a potential acquisition of its assets by Social Mobile, which could reach up to $20 million, including an earn-out based on revenue targets. The proposed transaction is viewed as a strategic opportunity to enhance shareholder value, with Sonim’s Special Committee noting that the offer from Social Mobile provides superior value compared to other bids. Additionally, Sonim is preparing for new product launches in key markets, including North America and Europe, supported by strategic investments and diversification of manufacturing operations to Taiwan and Vietnam. These developments are aimed at optimizing costs and expanding Sonim’s enterprise sector presence through major device upgrade agreements with top U.S. healthcare and energy companies.
Sonim Technologies has also adopted a Stockholder Rights Agreement to protect against potential takeover attempts, issuing rights to shareholders to deter acquisitions not offering fair value. This agreement follows an unsolicited acquisition proposal from Orbic North America, LLC, and aims to ensure the board has time to evaluate strategic options. In a related move, the company has amended the employment agreement with CFO Clay Crolius, enhancing severance benefits to ensure financial security in the event of a change in control. Furthermore, Sonim has partnered with Shareholder Intelligence Services to improve shareholder protection and corporate governance through advanced analytics on share trading. This partnership is expected to bolster regulatory compliance and boost confidence in Sonim’s stock.
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