Sonim Technologies Announces Pricing of $5.55 Million Public Offering

Rhea-AI Summary

Sonim Technologies (NASDAQ: SONM) has announced the pricing of a public offering of 7,400,000 shares of its common stock at $0.75 per share. The offering, expected to close around July 2, 2025, aims to raise gross proceeds of approximately $5.55 million.

The company plans to use the net proceeds for operations supporting its business strategy, working capital, general corporate purposes, and potential repayment and refinancing of indebtedness. Roth Capital Partners is serving as the exclusive placement agent for this offering.

The offering is being conducted pursuant to a registration statement on Form S-1 that was declared effective by the SEC on June 30, 2025.

Positive

• Secured $5.55 million in gross proceeds through public offering
• Funds will support business operations and working capital needs
• Potential debt reduction through refinancing of indebtedness

Negative

• Dilution of existing shareholders through issuance of 7.4 million new shares
• Share offering priced at $0.75, indicating potential market weakness

Insights

Capital Markets Analyst

Sonim's $5.55M equity raise provides needed capital but dilutes shareholders; modest size suggests limited financial flexibility.

Sonim Technologies has priced a $5.55 million public offering consisting of 7.4 million shares at $0.75 per share. This relatively modest capital raise provides essential funding but comes with notable shareholder dilution through the issuance of additional equity.

The offering size suggests Sonim may be operating with limited financial flexibility. The company's stated intention to use proceeds for "operations" and potentially for "repayment and refinancing of indebtedness" indicates this capital may be primarily addressing immediate balance sheet concerns rather than funding aggressive growth initiatives.

The selection of Roth Capital Partners as placement agent aligns with the offering's characteristics, as Roth typically specializes in smaller-cap company transactions. The use of a placement agent rather than a traditional underwriting arrangement may reflect the offering's limited size and scope.

Looking at capital structure implications, this equity issuance increases the company's outstanding share count, which dilutes existing shareholders' ownership percentages. However, if used to reduce debt as mentioned in their use of proceeds, it could strengthen the overall balance sheet by decreasing leverage and associated interest expenses.

The timing of this capital raise coming early in Q3 2025 could provide Sonim with working capital to execute through the remainder of the fiscal year, though the relatively modest size suggests careful cash management will remain essential.

San Diego, California--(Newsfile Corp. - July 1, 2025) - Sonim Technologies, Inc. (NASDAQ: SONM), a leading provider of rugged mobile solutions, today announced the pricing of a public offering of an aggregate of 7,400,000 shares of its common stock at a public offering price of $0.75 per share. The closing of the offering is expected to occur on or about July 2, 2025, subject to the satisfaction of customary closing conditions.

Roth Capital Partners is acting as the exclusive placement agent for the offering.

The gross proceeds from the offering, before deducting the placement agent’s fees and other offering expenses, are expected to be approximately $5.55 million. The Company intends to use the net proceeds from this offering for our operations supporting our overall business strategy as well as working capital and general corporate purposes, which may include the repayment and refinancing of our indebtedness.

The securities described above are being offered pursuant to a registration statement on Form S-1, as amended (File No. 333-288221), which was declared effective by the Securities and Exchange Commission (the "SEC") on June 30, 2025. The offering is being made only by means of a prospectus which forms a part of the effective registration statement. A preliminary prospectus relating to the offering has been filed with the SEC. Electronic copies of the final prospectus, when available, may be obtained on the SEC's website at www.sec.gov and may also be obtained by contacting Roth Capital Partners, LLC at 888 San Clemente Drive, Newport Beach CA 92660, or by phone at (800) 678-9147 or e-mail at rothecm@roth.com.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy any of the securities described herein, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction.

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.

Forward-Looking Statements

This release 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 statements relating to the completion of the public offering, the amount of gross proceeds expected from the offering, and the intended use of proceeds from the offering. These forward-looking statements are based on Sonim's current expectations, estimates and projections about its business and industry, management's beliefs 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," "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 availability of cash on hand; potential material delays in realizing projected timelines; the current interest and potential attempt of hostile takeover from a third party may divert the management attention from Sonim's business and may require significant expenses; Sonim's material dependence on its relationship with a small number of customers who account for a significant portion of Sonim's revenue; Sonim's entry into the data device sector could divert our management team's attention from existing products; risks related to Sonim's ability to comply with the continued listing standards of the Nasdaq Stock Market and the potential delisting of Sonim's common stock; Sonim's ability to continue to develop solutions to address user needs effectively, including its next-generation products; Sonim's reliance on third-party contract manufacturers and partners; Sonim's ability to stay ahead of the competition; Sonim's ongoing transformation of its business; the variation of Sonim's quarterly results; the lengthy customization and certification processes for Sonim's wireless carries customers; various economic, political, environmental, social, and market events beyond Sonim's control, as well as the other risk factors 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
anette.gaven@sonimtech.com
P: 619-993-3058

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/257337

FAQ

What is the size and price of Sonim Technologies (SONM) public offering in July 2025?

Sonim Technologies is offering 7,400,000 shares of common stock at $0.75 per share, aiming to raise gross proceeds of $5.55 million.

How will Sonim Technologies (SONM) use the proceeds from its July 2025 offering?

The company plans to use the net proceeds for operations supporting business strategy, working capital, general corporate purposes, and potential repayment and refinancing of indebtedness.

When will Sonim Technologies (SONM) July 2025 public offering close?

The offering is expected to close on or about July 2, 2025, subject to customary closing conditions.

Who is the placement agent for Sonim Technologies (SONM) July 2025 public offering?

Roth Capital Partners is acting as the exclusive placement agent for the offering.

What regulatory approval has Sonim Technologies (SONM) received for this offering?

The offering is being conducted under a Form S-1 registration statement that was declared effective by the SEC on June 30, 2025.