Sonim Technologies Confirms Receipt of Non-Binding Unsolicited Indication of Interest

Rhea-AI Summary

Sonim Technologies (NASDAQ: SONM) has received an unsolicited acquisition offer from DOOGEE to purchase all outstanding shares at $3.60 per share in cash. The Special Committee of Sonim's Board, which oversees strategic alternatives, acknowledged DOOGEE's June 9 indication of interest but stated they lack sufficient information to properly evaluate the offer. The committee requires detailed information about DOOGEE's financing arrangements, strategic rationale, and regulatory execution capabilities. Currently, Sonim has an existing exclusive letter of intent (LOI) for a reverse takeover, and the committee remains committed to advancing this agreement. Mike Mulica, Special Committee Chair, noted that while the interest validates Sonim's market value, their priority is maintaining a disciplined evaluation process.

Positive

• Unsolicited acquisition offer at $3.60 per share in cash shows market interest in Sonim
• Multiple strategic options available with existing LOI and new acquisition interest
• Potential for maximizing shareholder value through competitive bidding

Negative

• Lack of detailed information from DOOGEE regarding financing and execution capabilities
• Potential regulatory constraints could affect deal completion
• Uncertainty around existing exclusive LOI and its impact on alternative offers

Insights

Financial Analyst & M&A Specialist

Sonim receives $3.60/share acquisition offer from DOOGEE while already pursuing another deal, creating competitive bidding potential.

This press release reveals a potentially significant development for Sonim Technologies (NASDAQ: SONM) shareholders. DOOGEE has made an unsolicited all-cash offer of $3.60 per share to acquire Sonim entirely. What makes this situation particularly interesting is that Sonim already has an exclusive letter of intent (LOI) with another unnamed party for a reverse takeover transaction.

The Special Committee handling Sonim's strategic alternatives process has acknowledged DOOGEE's interest but outlined several critical missing elements needed for proper evaluation: financing details, strategic rationale, and regulatory feasibility information. The committee has characterized DOOGEE's approach of waiting for the existing LOI to expire as "neither conventional nor constructive" in pursuing a legitimate transaction.

From a financial perspective, this scenario potentially strengthens Sonim's negotiating position. The concrete $3.60 per share offer establishes a baseline valuation that could influence the existing LOI negotiations. While the press release doesn't disclose Sonim's current share price or the terms of the existing LOI, the emergence of multiple interested parties typically creates competitive tension that can benefit shareholders.

The Special Committee's measured response demonstrates proper governance - they're neither dismissing the new offer nor abandoning their existing process. Their statement that they remain "focused on advancing the current LOI toward a definitive agreement" suggests they see value in the original deal, while also acknowledging their obligation to evaluate all legitimate offers.

The committee chair's comment that this unsolicited interest "underscores the market's recognition of the underlying value of Sonim" highlights the potential validation of the company's worth through this competitive interest. For Sonim shareholders, this development introduces new possibilities while the Special Committee conducts its fiduciary duty to maximize value.

San Diego, California--(Newsfile Corp. - June 16, 2025) - The Special Committee of the Board of Directors (the "Special Committee") of Sonim Technologies, Inc. (NASDAQ: SONM), formed to oversee the Company's ongoing strategic alternatives process, today confirmed receipt of an unsolicited indication of interest issued by DOOGEE on June 9, 2025 in the form of a press release, to acquire all outstanding shares of Sonim for $3.60 per share in cash. The Special Committee issued the following statement on the matter:

At this time, the Special Committee lacks sufficient information to evaluate DOOGEE's indication of interest in a manner consistent with its fiduciary duties to Sonim's stockholders. To enable a responsible and informed assessment consistent with those duties, the Special Committee needs DOOGEE to provide detailed information regarding financing arrangements, strategic rationale, and its ability to execute a transaction in the light of potential regulatory constraints. While DOOGEE's public communication encouraged the directors of Sonim to reconsider the existing exclusive letter of intent (the "LOI"), the Special Committee is prepared to begin evaluating the indication of interest once it is supported by sufficient detail to allow for evaluation in accordance with the Special Committee's fiduciary obligations to maximize stockholder value.

DOOGEE's stated willingness to wait for the expiration or termination of Sonim's exclusive LOI is neither conventional nor constructive in pursuing a bona fide transaction with a public company. The Special Committee remains focused on advancing the current LOI toward a definitive agreement and reverse takeover to maximize value for Sonim's stockholders.

"This unsolicited indication of interest underscores the market's recognition of the underlying value of Sonim and its business," said Mike Mulica, Chair of the Special Committee. "While we welcome the interest, our priority is to remain focused and disciplined in our process, evaluating any third-party outreach with the thoroughness and diligence our fiduciary duties demand."

About Sonim Technologies
Sonim Technologies is a leading U.S. provider of 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.

Additional Information and Where to Find It

This communication relates to the proposed transaction involving Sonim. This communication does not constitute a solicitation of any vote or approval. In connection with the proposed transaction, Sonim plans to file with the SEC a proxy statement (the "Proxy Statement") relating to a special meeting of its stockholders and may file other documents with the SEC relating to the proposed transaction. This communication is not a substitute for the Proxy Statement or any other document that Sonim may file with the SEC or send to its stockholders in connection with the proposed transaction. Before making any voting decision, stockholders of Sonim are urged to read the Proxy Statement in its entirety when it becomes available and any other relevant documents filed or to be filed with the SEC and any amendments or supplements thereto and any documents incorporated by reference therein, because they will contain important information about the proposed transaction and the parties to the proposed transaction. Any vote in respect of resolutions to be proposed at a stockholder meeting of Sonim to approve the proposed transaction or related matters, or other responses in relation to the proposed transaction, should be made only on the basis of the information contained in the Proxy Statement. Investors and security holders will be able to obtain the Proxy Statement and other documents Sonim files with the SEC (when available) free of charge at the SEC's website (http://www.sec.gov) or at Sonim's investor relations website (https://ir.sonimtech.com/) or by e-mailing Sonim to ir@sonimtech.com.

Participants in the Solicitation

Sonim and its respective directors, executive officers, and other members of their management and employees, including Peter Liu (Chief Executive Officer and a director), Clay Crolius (Chief Financial Officer), and Sonim's directors - James Cassano, Mike Mulica, Jack Steenstra, and Jeffrey Wang - under SEC rules, may be deemed to be participants in the solicitation of proxies of Sonim's stockholders in connection with the proposed transaction.

Stockholders may obtain more detailed information regarding Sonim's directors and executive officers, including a description of their direct or indirect interests, by security holdings or otherwise, under the captions "Directors, Executive Officers, and Corporate Governance," "Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters," and "Certain Relationships and Related Party Transactions, and Director Independence" of Sonim's Amendment No. 1 to its Annual Report on Form 10-K filed with the SEC on April 29, 2025 (the "Annual Report").

Any subsequent updates following the date hereof to the information regarding the identity of potential participants, and their direct or indirect interests, by security holdings or otherwise, will be set forth in the Proxy Statement and other materials to be filed with the SEC in connection with the proposed transaction, if and when they become available. These documents will be available free of charge as described above.

Forward-Looking statements

This communication contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. These statements relate to, among other things, the anticipated effects of the proposed transaction and the strategy of Sonim in connection with strategic alternatives. These forward-looking statements are based on Sonim's current expectations, estimates and projections, and certain assumptions made by Sonim, all of which are subject to change. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "achieve," "aim," "ambitions," "anticipate," "believe," "committed," "continue," "could," "designed," "estimate," "expect," "forecast," "future," "goals," "grow," "guidance," "intend," "likely," "may," "milestone," "objective," "on track," "opportunity," "outlook," "pending," "plan," "poised," "position," "possible," "potential," "predict," "progress," "promises," "roadmap," "seek," "should," "strive," "targets," "to be," "upcoming," "will," "would," and variations of such words and similar expressions or the negative of those terms or expressions. Such statements involve risks and uncertainties, which could cause actual results to vary materially from those expressed in or indicated by the forward-looking statements. Factors that may cause actual results to differ materially include, but are not limited to, the following: the ability of Sonim to meet expectations regarding the timing and completion of the proposed transaction; the possibility that the LOI will not result in the definitive agreement; the possibility that the conditions to the closing of the proposed transaction are not satisfied, including the risk that the required approvals are not obtained and that Sonim's stockholders do not approve the proposed transaction; the occurrence of any event, change or other circumstances that could result in the definitive agreement (if ever executed) being terminated or the proposed transaction not being completed on the terms reflected in the definitive agreement, or at all; the risk that the LOI may be terminated in circumstances that require Sonim to pay a termination fee; potential litigation relating to the proposed transaction; the risk that the proposed transaction and its announcement could have adverse effects on the market price of Sonim's common stock; risk that the current board of directors of Sonim loses proxy contest and the new directors' slate determines to terminate the proposed transaction (whether at the state of LOI or definitive agreement); risks related to the possible failure of Sonim to achieve earn-out; the effect of the announcement of the proposed transaction on the ability of Sonim to retain key personnel and maintain relationships with customers and business partners; the risk of unexpected costs or expenses resulting from the proposed transaction and the LOI; and other risks and uncertainties, including those described under "Risk Factors" included in Sonim's most recent Annual Report on Form 10-K and any subsequent quarterly filings on Form 10-Q filed with the Securities and Exchange Commission (available at www.sec.gov). Sonim cautions you not to place undue reliance on forward-looking statements, which speak only as of the date hereof. Sonim assumes no obligation to update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release, except as required by law.

Media Contact
Anette Gaven
pr@sonimtech.com
619-993-3058

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/255605

FAQ

What is the acquisition offer price for Sonim Technologies (SONM) from DOOGEE?

DOOGEE has offered to acquire all outstanding shares of Sonim Technologies for $3.60 per share in cash.

How has Sonim Technologies (SONM) responded to DOOGEE's acquisition offer?

Sonim's Special Committee stated they lack sufficient information to evaluate DOOGEE's offer and require more details about financing, strategic rationale, and regulatory execution capabilities.

What is preventing Sonim Technologies (SONM) from accepting DOOGEE's offer?

Sonim currently has an exclusive letter of intent (LOI) for a reverse takeover, and needs more detailed information from DOOGEE to properly evaluate their offer.

Who is the Chair of Sonim Technologies' (SONM) Special Committee?

Mike Mulica serves as the Chair of Sonim Technologies' Special Committee.

What information is Sonim Technologies (SONM) requesting from DOOGEE?

Sonim is requesting detailed information regarding financing arrangements, strategic rationale, and DOOGEE's ability to execute the transaction considering potential regulatory constraints.