AUSTIN, Texas, September 14, 2021 / PRNewswire / – Sonim Technologies, Inc. (“the Company” or “Sonim”) (Nasdaq: SONM), today announced its intention to reverse split one for ten of its issued and into circulation (the “Reverse Stock Split”). The Reverse Stock Split will come into effect on 5:00 p.m. Eastern Time to September 15, 2021 (the “Effective Date”), and the common shares of the Company are expected to begin trading on a split-adjusted basis at the opening of the market on September 16, 2021.
At Sonim’s Annual Meeting of Shareholders held on September 29, 2020 (the “2020 Annual Meeting”), the shareholders of the Company have approved the amendment of the amended and restated certificate of incorporation of the Company to effect a reverse stock consolidation of the common shares of the Company in a report of at least one to two and at most greater than one to twelve, this ratio as well as the implementation and timing of this Reverse Stock Split being determined by the Board of Directors of the Company at its sole discretion at any time prior to the first anniversary of the 2020 Annual Meeting. The Board of Directors has now approved the implementation of a Reverse Stock Split at the rate of one to ten with the schedule described above.
The Company’s common shares will continue to trade on the Nasdaq Stock Market LLC (“Nasdaq”) under the symbol “SONM”. The new CUSIP number for the common shares following the Reverse Stock Split will be 83548F200.
No fractional shares will be issued as part of the Reverse Stock Split. Shareholders who would otherwise be entitled to receive a fraction of a share will instead be entitled to receive cash (rounded to the nearest cent, without interest and subject to applicable withholding taxes) instead of that fraction of share from the Company’s transfer agent, American Stock Transfer & Trust Company, LLC, in an amount equal to the proceeds obtained by multiplying (a) the closing price per share of the Company’s common stock as published on the Nasdaq on the Effective Date, by (b) the fraction of the share held by these shareholders. Holders of common shares of the Company held in book-entry form or through a bank, broker or other nominee need not take any action in connection with of the Reverse Stock Split. Registered shareholders will receive information from the Company’s transfer agent regarding their ordinary shareholding after the Reverse Stock Split.
The Reverse Stock Split will not modify any right or preference of the common shares of the Company and there will be no change in the par value per share. The Reverse Stock Split aims to increase the market price per share of the Company’s common stock to ensure that the Company fully complies with the Nasdaq minimum bid price requirement and maintains its Nasdaq listing. The Reverse Stock Split will also make available an increased number of authorized but unissued ordinary shares of the Company, allowing the Company to pursue additional financing activities and / or other strategic transactions.
About Sonim Technologies, Inc.
Sonim Technologies is a leading US supplier of ultra-rugged mobile phones and accessories designed specifically for workers physically involved in their work environments, often in critical roles. We currently sell our enhanced mobility solutions to several of the largest wireless carriers in the United States, including AT&T, T-Mobile and Verizon, as well as to the three largest wireless carriers in Canada: Bell, Rogers and Telus Mobility. Our phones and accessories connect workers to voice, data and workflow applications in two end markets: the industrial enterprise and the public sector. In 2020, we announced that we would enter the ruggedized barcode reader business and started shipping our first devices in March 2021. Our barcode scanners, as well as our ruggedized phones and accessories, are sold through distributors in North America, South America and Europe. For more information, visit www.sonimtech.com.
Important Cautions Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. These statements concern, among other things, the expected timing of the Reverse Stock Split and the expected benefits to be derived from the Reverse Stock Split. These forward-looking statements are based on Sonim’s current expectations, estimates and projections regarding its business and industry, the beliefs of management and certain assumptions made by Sonim, all of which are subject to change. Forward-looking statements can generally be identified by the use of forward-looking terminology such as “future”, “believe”, “expect”, “may”, “intend”, “intend” , “Estimate”, “continue”, “or similar expressions or the negative of such terms or expressions. Such statements involve risks and uncertainties, which could cause actual results to vary materially from those expressed or indicated by the forward-looking statements Factors that could cause actual results to differ materially include, but are not limited to, the following: Sonim’s ability to be profitable and continue to operate Sonim’s exploration of strategic or financial alternatives cannot result in no transaction or alternative that enhances value; Sonim’s ability to continue to develop solutions to effectively meet user needs, including s its new generation products; anticipated sales levels of new and old products; Sonim’s dependence on its distribution partners to generate a substantial majority of its revenues; limited operating history in Sonim’s markets; the ongoing restructuring and transformation of Sonim of its business; changes in Sonim’s quarterly results; lengthy customization and certification processes for Sonim wireless network customers; the impact of the COVID-19 pandemic; and the ongoing investigation by the Securities and Exchange Commission into the business of Sonim, as well as other risk factors described under “Risk Factors” included in Sonim’s quarterly report on Form 10-Q for the three months ended June 30, 2021 and Sonim’s annual report on Form 10-K for the fiscal year ended December 31, 2020, and all risk factors contained in subsequent quarterly and annual reports it files 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 to reflect events or circumstances that may arise after the date of this release, except as required by law.
View original content to download multimedia: https://www.prnewswire.com/news-releases/sonim-announces-reverse-stock-split-301376730.html
SOURCE Sonim Technologies, Inc.