Company: SONM
Filing Date: 2025-12-05
Form Type: DEFM14A
Source: 0001493152-25-026277
Chunk: 42

Company: SONIM TECHNOLOGIES INC
Filing Date: 2025-12-05
Form: DEFM14A
Chunk 42
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, printing, and mailing fees, which may materially and adversely affect our
financial condition and results of operations. In addition, the Asset Purchase Agreement generally requires the Company to operate its
business in the ordinary course of business consistent with past practice, pending consummation of the Asset Purchase Agreement, and
also restricts us from taking certain actions with respect to our business and financial affairs without the consent of Social Mobile.
Such restrictions will be in place until the Asset Purchase Agreement is either consummated or terminated. Such restrictions could adversely
affect our business and results of operations prior to completion of the Asset Purchase Agreement.

The Asset Purchase Agreement contains a termination fee and restrictions on solicitation that limit our ability to pursue alternatives to the Asset Purchase Agreement and may discourage competing offers.

Under the Asset Purchase Agreement, we are restricted
from soliciting, initiating, inducing, knowingly encouraging, knowingly inducing, or knowingly facilitating alternative acquisition
proposals from third parties, or providing non-public information to third parties relating to any inquiries, proposals or offers that
would reasonably be expected to lead to certain transactions involving a third party, including a merger, business combination, sale
of stock, sale of assets, or similar transaction, subject to specified exceptions, including the solicitation of an RTO transaction
that does not impact the disposition of the Legacy Business. The Asset Purchase Agreement also contains termination
provisions for both us and the Buyer, including the right of the Company to terminate the Asset Purchase Agreement to accept a Superior
Proposal (as defined in the Asset Purchase Agreement), subject to and in accordance with the terms and conditions of the Asset Purchase
Agreement, and provides that, in connection with the termination of the Asset Purchase Agreement by us to enter into an alternative acquisition
agreement providing for a Superior Proposal, we will pay the Buyer (i) reimbursement of transaction-related expenses reasonably incurred
by the Buyer and its affiliates, and (ii) a termination fee of $1 million. These provisions could discourage a third party that may have
an interest in acquiring all or a significant part of our business from considering or proposing that acquisition, even if such third
party were prepared to pay consideration with a higher value than the value of the consideration in the Asset Purchase Agreement.

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The conditions under the Asset Purchase Agreement to our consummation of the Asset Sale may not be satisfied in the anticipated timeframe or at all.

Under the terms of the Asset Purchase Agreement,
the consummation of the Asset Sale is subject to customary closing conditions.