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SAN DIEGO - Sonim Technologies, Inc. (NASDAQ:SONM), a micro-cap company with a market value of $14.68 million that has seen its stock surge over 20% in the past week, provided an update Monday on its proposed reverse takeover (RTO) with a private U.S. company developing Nvidia-based High-Performance Computing AI factories.
Under the terms outlined in the Letter of Intent (LOI) announced on June 25, Sonim shareholders would receive equity ownership in the combined company valued at $17.5 million, with potential for future value appreciation.
The target company is focused on building infrastructure to support growing cloud-based artificial intelligence workloads, according to the company statement.
Sonim Technologies, which specializes in rugged mobile solutions including phones and wireless internet data devices, said it would provide additional updates as the transaction progresses.
The proposed transaction requires several approvals, including from Sonim’s stockholders and Nasdaq. The company noted that maintaining its Nasdaq listing may require implementing a reverse stock-split.
Sonim has filed a definitive proxy statement with the SEC regarding its 2025 Annual Meeting of Stockholders and plans to file additional documentation related to the proposed transaction, including a proxy statement for a special meeting.
The company cautioned that the LOI may not result in a definitive agreement and outlined several factors that could impact the completion of the transaction, including failure to obtain required approvals.
Sonim Technologies has been providing rugged mobile solutions to first responders, government agencies, and Fortune 500 customers since 1999, according to the press release statement. Want deeper insights into Sonim’s financial health and future prospects? InvestingPro offers 18 additional investment tips and comprehensive analysis tools to help you make informed investment decisions.
In other recent news, Sonim Technologies has received a $25 million acquisition offer from Orbic North America. This proposal follows Sonim’s announcement of a reverse takeover with a private US company focused on Nvidia-based High-Performance Computing, where Sonim stockholders would hold equity valued at $17.5 million. Orbic’s offer is backed by a $50 million financing commitment and does not interfere with the reverse takeover plan. Meanwhile, Sonim has also signed a Letter of Intent with Social Mobile for a potential $20 million asset sale, including a $5 million earn-out. The company is amidst a proxy contest initiated by Orbic and AJP Holding Company, who together own 19% of Sonim and have nominated new director candidates. These investors have criticized Sonim’s financial performance, citing a $33.65 million net loss in 2024 and cumulative losses of $86.45 million from 2021-2024. Sonim’s Board formed a Special Committee to evaluate strategic alternatives and has urged stockholders to support its current leadership. The ongoing developments highlight the strategic crossroads at which Sonim finds itself, as it navigates multiple acquisition offers and leadership challenges.
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