Sonim Technologies Closes Non-Dilutive Financing of $3 Million in Net Proceeds

Rhea-AI Summary

Sonim Technologies (NASDAQ: SONM) has secured a $3 million non-dilutive financing through a non-convertible unsecured promissory note from a Chicago-based family office. The note carries a 9% annual interest rate and matures in 18 months. This strategic financing aims to accelerate the company's path to standalone profitability while maintaining its capital structure.

The company, which specializes in rugged mobile solutions, structured the deal without issuing any warrants, preserving shareholder value. According to CFO Clay Crolius, this financing strengthens their financial position and supports their commercial progress and growth initiatives. Sonim continues to evaluate various inbound strategic alternatives.

Positive

• Secured $3 million in non-dilutive financing
• No warrant issuance, protecting shareholder value
• Financing supports path to profitability
• Strategic alternatives under evaluation

Negative

• 9% interest rate on promissory note adds to debt burden
• 18-month maturity creates short-term repayment obligation

Non-convertible unsecured promissory note issued

Family office invests in promissory note

No warrants issued

Accelerates progress to standalone profitability

Sonim continues to assess various inbound strategic alternatives

San Diego, California--(Newsfile Corp. - February 24, 2025) - Sonim Technologies, Inc. (NASDAQ: SONM), a leading provider of rugged mobile solutions, today announced it has closed financing of a non-dilutive, non-convertible unsecured promissory note with net proceeds of $3 million. The investor is a Chicago-based family office. This financing helps accelerate Sonim's progress to standalone profitability. Sonim continues to assess various inbound strategic alternatives.

The promissory note accrues interest at a rate of 9% per annum and matures 18 months from issuance.

"This pivotal and strategic financing increases our financial strength," said Clay Crolius, Chief Financial Officer of Sonim Technologies. "This non-dilutive, non-convertible debt financing enhances our ability to achieve important commercial progress and ongoing growth initiatives while maintaining a disciplined approach to our capital structure."

About Sonim Technologies

Sonim Technologies is a leading U.S. provider of ultra-rugged and rugged mobile solutions, including phones, wireless internet data devices, accessories and software designed to provide extra protection for users that demand more durability in their work and everyday lives. Trusted by first responders, government, and Fortune 500 customers since 1999, we currently sell our ruggedized mobility solutions through tier one wireless carriers and distributors in North America, EMEA, and Australia/New Zealand. Sonim devices and accessories connect users with voice, data, workflow and lifestyle applications that enhance the user experience while providing an extra level of protection. For more information, visit www.sonimtech.com.

Media Contact

Anette Gaven
anette.gaven@sonimtech.com
+16199933058

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/242047

FAQ

What are the terms of SONM's new $3 million financing?

The financing is through a non-convertible unsecured promissory note with a 9% annual interest rate and 18-month maturity, with no warrants issued.

How will the $3 million financing impact SONM shareholders?

The financing is non-dilutive and non-convertible, meaning it won't dilute existing shareholders' ownership stakes in the company.

What is the purpose of SONM's February 2025 financing?

The financing aims to accelerate Sonim's progress toward standalone profitability and support commercial progress and growth initiatives.

Who provided the $3 million financing to SONM?

A Chicago-based family office provided the financing through a promissory note investment.