Company: SONM
Filing Date: 2025-12-05
Form Type: DEFM14A
Source: 0001493152-25-026277
Chunk: 1

Company: SONIM TECHNOLOGIES INC
Filing Date: 2025-12-05
Form: DEFM14A
Chunk 1
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 “Parent”), solely for the purpose of guaranteeing
complete payment and performance obligations of the Buyer, entered into an asset purchase agreement (as amended, the “Asset
Purchase Agreement”). Pursuant to the Asset Purchase Agreement, the Buyer agreed to acquire substantially all assets of the Company
and its subsidiaries (the “Asset Sale”) related to the Company’s enterprise 5G solutions business, including rugged
handsets, smartphones, wireless internet device, software, services, and accessories (the “Legacy Business”).

If the Asset Sale is consummated, the
Company will exit the operation of its Legacy Business and other historical operations. However, the Company does not intend to liquidate
following the closing of the Asset Sale and currently intends to pursue a strategic transaction, the terms and timing of which
are not presently known. However, there can be no assurance that any such transaction will be pursued, agreed upon, or ultimately
consummated. The Company’s board of directors is currently evaluating alternatives for the use of the Post-Closing Cash.
Those alternatives are currently expected to include using the Post-Closing Cash to fund, among other things, the Company’s operational
expenses.

As consideration for the Asset Sale, the
Buyer will (i) pay to the Company $15 million in cash, subject to customary working capital, indebtedness, and transaction expense adjustments
(the “Cash Consideration”), and (ii) up to $5 million in the form of an earn-out payment, if earned. The Company estimates
that, if the Asset Sale closes on or about January 31, 2026, the Company will have Post-Closing Cash of approximately
$4 million to $6 million. In this proxy statement, the term “Post-Closing Cash” refers to (i) the Cash
Consideration plus (ii) the cash, cash equivalents, and marketable securities that will be retained by the Company (and withheld
from the Asset Sale) minus (iii) (A) the transaction expenses payable by the Company at closing and (B) the payment of up
to $5.9 million of our indebtedness; provided, however, that the term “Post-Closing Cash” excludes any earn-out
payments from the Buyer.

At the Special Meeting, you will be asked to consider
and vote upon:

| 1. | A proposal to approve the Asset Purchase Agreement, the Asset Sale                          
 relating to the sale of substantially all of the Company’s assets as contemplated by        
 the Asset Purchase Agreement