Sonim Technologies, Inc., a leading U.S. provider of ultra-rugged mobile devices, accessories, and solutions designed specifically for task workers physically engaged in their work environments, announced that on August 8, 2022, it closed the second tranche of its subscription agreement with U.S.-based AJP Holding Company, LLC (“AJP”) whereby AJP has now purchased an aggregate of $17.5 million in Sonim equity at a price of $0.84 per share.
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The second closing included approximately 5.9 million shares of Common Stock for an aggregate purchase price of $5.0 million in gross proceeds. The first closing, completed in July 2022, included the purchase of approximately 14.9 million shares of Common Stock for an aggregate purchase price of $12.5 million. Upon completion of the transaction, which was approved by stockholders at a special meeting held on June 28, 2022, AJP and its affiliated parties together own approximately 52% of Sonim’s post-transaction outstanding capital stock based on an estimated 19.3 million shares outstanding prior to the transaction.
The agreement with AJP supports a new strategy whereby Sonim will expand from its core market in ultra-rugged mobile devices into the larger and faster growing semi-rugged and industrial 5G markets. This enhanced strategy proposed by AJP is expected to drive revenue growth, increase operating efficiency, accelerate ODM-based product development at lower cost and broaden Sonim’s addressable market opportunities.
Sonim Technologies is a leading U.S. provider of ultra-rugged mobile phones and accessories designed specifically for task workers physically engaged in their work environments, often in mission-critical roles. We currently sell our ruggedized mobility solutions to several of the largest wireless carriers in the United States— including AT&T, T-Mobile and Verizon—as well as the three largest wireless carriers in Canada—Bell, Rogers and Telus Mobility. Our phones and accessories connect workers with voice, data and workflow applications in two end markets: industrial enterprise and public sector. Our ruggedized phones and accessories are sold through distributors in North America, South America and Europe