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SAN DIEGO - Sonim Technologies, Inc. (NASDAQ:SONM), currently trading at $1.12 and showing a significant 89% decline over the past year according to InvestingPro data, announced Wednesday it has signed a non-binding Letter of Intent (LOI) for a reverse takeover (RTO) with a private US company building Nvidia-based High-Performance Computing AI factories.
Under the proposed transaction, Sonim stockholders would retain equity valued at $17.5 million in the combined company, while the target company would be valued at approximately $300 million. The target’s stockholders would own a majority stake in the combined entity, which would maintain its Nasdaq listing under a new name and ticker symbol. InvestingPro analysis indicates Sonim is currently undervalued, with a market capitalization of just $11.58 million.
The deal follows Sonim’s previously announced sale of substantially all its operating assets for $15 million, plus a potential $5 million earn-out.
"This transaction positions Sonim stockholders to benefit from the tremendous growth of the AI revolution," said Mike Mulica, Chair of Sonim’s Special Committee.
The target company focuses on High-Performance Computing as a Service (HPCaaS) through owned data centers with dedicated power generation. It plans to activate thousands of GPUs in 2025 to meet growing demand for AI computing capacity.
The transaction remains subject to several conditions, including execution of a definitive agreement, regulatory approval, Sonim stockholder approval, and completion of Sonim’s legacy business sale.
Global demand for AI-ready high-performance computing capacity is projected to grow at an annual rate of 33% through 2030, according to information provided in the press release statement. For deeper insights into Sonim’s financial health and additional investment analysis, including 18 more exclusive ProTips, visit InvestingPro.
Sonim Technologies currently provides rugged mobile solutions including phones and wireless internet devices for first responders, government agencies, and Fortune 500 companies.
In other recent news, Sonim Technologies has reported several key developments. The company has announced a Letter of Intent with Social Mobile to sell substantially all of its operating assets for up to $20 million, including a potential $5 million earn-out. Additionally, Sonim is exploring a reverse takeover transaction targeting a $15 million valuation. Amid these strategic moves, Sonim confirmed receiving an unsolicited proposal from DOOGEE to acquire all outstanding shares for $3.60 per share in cash, although the company states it lacks sufficient information to evaluate this offer fully. In response to these acquisition interests, Sonim has adopted a Stockholder Rights Agreement to protect shareholder interests against potential takeover attempts that do not offer fair value. Meanwhile, the company is preparing to launch new products across key global markets, supported by recent strategic investments and diversification of its manufacturing operations outside China. Sonim has also secured major device upgrade agreements with top U.S. healthcare systems and other enterprises. The company’s board is urging stockholders to support its director nominees in the upcoming annual meeting, emphasizing the need for strategic consistency and the protection of shareholder value.
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