Company: SONM
Filing Date: 2025-09-19
Form Type: DEF 14A
Source: 0001493152-25-014244
Chunk: 28

Company: SONIM TECHNOLOGIES INC
Filing Date: 2025-09-19
Form: DEF 14A
Chunk 28
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’s
chances to pursue strategic initiatives that the board deems to be in the interest of the Company and its stockholders, in addition to
the sale of its legacy business. However, we cannot guarantee that any of the strategic initiatives will be consummated following the
approval of the Authorized Shares Amendment. We, nevertheless, believe that the availability of additional authorized shares of our common
stock will afford us the needed flexibility in acting upon financing transactions to strengthen our financial position or engaging in
strategic activities without using cash. Unless required by applicable law or stock exchange rules, no further vote of the holders of
common stock will be required with respect to any such transaction.

Potential effects of the Authorized Shares Amendment

General

The additional shares of common
stock for which authorization is sought would be identical in powers, privileges, and rights to the shares of common stock that are now
authorized. Holders of common stock do not have preemptive rights to subscribe to additional securities that we may issue.

Dilutive effect

The issuance of additional shares
of common stock may, among other things, have a dilutive effect on earnings per share and on stockholders’ equity and voting rights.
Furthermore, future sales of substantial amounts of our common stock, or the perception that these sales might occur, could adversely
affect the prevailing market price of our common stock or limit our ability to raise additional capital. Stockholders should recognize
that, as a result of this proposal, they will own a smaller percentage of shares relative to the total authorized shares of the Company
than they presently own.

Anti-takeover effect

The Authorized Shares Amendment
could, under certain circumstances, have an anti-takeover effect. Our Board might be able to delay or impede a takeover or transfer of
control of our Company by causing such additional authorized but unissued shares to be issued to holders who might side with our Board
in opposing a takeover bid that the Board determines is not in the best interests of our Company and our stockholders. The Authorized
Shares Proposal could therefore have the effect of discouraging unsolicited takeover attempts. By potentially discouraging the initiation
of any such unsolicited takeover attempts, the Authorized Shares Proposal could limit the opportunity for our stockholders to dispose
of their shares at a higher price generally available in takeover attempts or that may be available under a merger proposal.

Our board has not proposed an
increase in the number of authorized shares with the intention of discouraging tender offers or takeover attempts.

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Reservation of