Company: SONM
Filing Date: 2025-04-21
Form Type: 8-K
Source: 0001641172-25-005546
Chunk: 1

Company: SONIM TECHNOLOGIES INC
Filing Date: 2025-04-21
Form: 8-K
Item: Item 1.01
Chunk 1
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ii) in response to
Orbic forming a Section 13 group with our major stockholder and rapid accumulation of the voting power. The Rights Agreement is intended
to enable all stockholders to realize the full value of their investment in the Company and afford the Special Committee adequate time
to consider any further strategic proposals. The Rights Agreement will reduce the likelihood that any entity, person, or group gains control
of the Company through open market accumulation without paying all stockholders an appropriate control premium or without providing the
Special Committee sufficient time to make informed judgments and take actions that are in the best interests of all stockholders. The
Rights Agreement does not prevent the Special Committee from engaging with parties or accepting an acquisition proposal, including from
Orbic, if the Special Committee believes that it is in the best interests of the Company and all of its stockholders.

A summary of the terms of the
Rights Agreement follows:

The Rights

The Rights will not be exercisable
and will trade with shares of the Common Stock until the earlier to occur of (a) the tenth calendar day (or such later date as may be
determined by the Board) after a person or group acquires beneficial ownership of 15.5% (Passive Investor Limitation in the case of passive
investors filing Schedule 13G) or more of our outstanding Common Stock (an “ Acquiring Person”) or (b) the tenth business day
(or such later date as may be determined by action of the Board prior to such time as any person or entity becomes an Acquiring Person)
following the date of commencement of, or the first announcement of, an intention to commence, a tender offer or exchange offer, the consummation
of which would result in any person or entity or group of persons or entities acting in concert becoming an Acquiring Person. The term
“ Acquiring Person” is subject to certain customary exceptions whereby certain stockholders that would have otherwise been
an Acquiring Person are excluded from the definition of “ Acquiring Person.” Any stockholders with beneficial ownership of
Common Stock above the applicable threshold as of the time of this announcement are grandfathered at their current ownership levels but
are not permitted to increase their ownership without triggering the Rights. Prior to exercise, the Right does not give its holder any
dividend, voting, or liquidation rights.

The date when the Rights separate
from Common Stock and become exercisable is referred to herein as the “ Distribution Date.” Until that date, Common Stock notations
in