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

AJP Holding Company, LLC agreed to purchase 20.8 million Sonim Technologies Inc 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.