AJP To Acquire Stake In Sonim At 20% Premium To Drive Growth, Addressable Market

Anusuya Lahiri
1 min read
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In this article:

  • AJP Holding Company, LLC agreed to purchase 20.8 million Sonim Technologies Inc (NASDAQ: SONM) shares at $0.84 per share for $17.5 million under a subscription agreement. Sonim shares closed at $0.70 on Wednesday.

  • Sonim is a U.S. provider of ultra-rugged mobile devices, accessories, and solutions.

  • AJP will own 52% of Sonim's post-transaction outstanding capital stock based on 19.3 million shares outstanding before the transaction.

  • Peter Liu, Sonim's EVP for Global Operations and Engineering since 2010, became the CEO, effective April 14.

  • Liu is part of the investment group at AJP and leading the strategic development of Sonim's expanded market focus.

  • Sonim embarks on a strategy to expand from its core market in ultra-rugged mobile devices into semi-rugged and industrial 5G markets.

  • AJP's proposed enhanced strategy is expected to drive revenue growth, improve operating efficiency, accelerate ODM-based product development at lower cost and broaden Sonim's addressable market opportunities.

  • Price Action: SONM shares traded higher by 12.1% at $0.79 in the premarket on the last check Thursday.

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