Company: SONM
Filing Date: 2025-06-18
Form Type: DEFC14A
Source: 0001641172-25-015578
Chunk: 19

Company: SONIM TECHNOLOGIES INC
Filing Date: 2025-06-18
Form: DEFC14A
Chunk 19
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 competitor of Sonim and an affiliate of Orbic North America, LLC (“Orbic”), filed a lawsuit in the United States District Court for the Eastern District of New York against Sonim, Dr. Chuan Wang, and two entities controlled by Dr. Wang ( Reliance Communications, LLC v. Wang et al., 24-CV-4433 (“IP Litigation”)), alleging misappropriation of trade secrets. Sonim regards the lawsuit as meritless and has asked the Court to dismiss it with prejudice.

On January 15, 2025, Orbic publicly announced that it had reached an “agreement in principle” to acquire a substantial block of Sonim’s common stock from AJP. This announcement, made without prior notice to the Company, included Orbic’s stated intent to pursue discussions with Sonim regarding a potential acquisition. In response, the Board formed a special committee of independent directors not affiliated with AJP (the “Special Committee”) to evaluate strategic alternatives, including Orbic’s overture.

On January 28,
2025, immediately following a meeting of the Board at which Mr. Wang was present (but Dr. Wang was not), Dr. Wang contacted Mr. Liu to
challenge his position on a vote relating to Sonim’s proposed financing initiatives. During this communication, Dr. Wang expressly
advocated for the resignation of the entire Board and for actions aligned with Orbic’s interests. He further asserted that Orbic
intended to pursue litigation against Sonim’s officers and directors in their individual capacities and demanded that Sonim cease
pursuing any additional financing unless the Board resigned. Dr. Wang also demanded that Sonim cease any efforts to secure additional
operational financing unless the Board resigns.

On February 5, 2025, Reliance’s counsel in the IP Litigation asserted that Mr. Wang had shared Sonim’s material nonpublic information with Reliance and Orbic.

On February 6, 2025, the Board notified Mr. Wang that his involvement in these disclosures appeared to constitute a breach of fiduciary duty and Sonim’s Insider Trading Policy.

On February 3, 2025, in contravention of Sonim’s Insider Trading Policy, AJP and Mr. Wang notified the Company that they had finalized a stock purchase agreement with Orbic for a portion of the AJP Shares. The Insider Trading Policy required pre-clearance of all transactions involving Company insiders and expressly prohibited transactions during designated blackout periods. AJP and Mr. Wang failed