Company: SONM
Filing Date: 2025-04-21
Form Type: 8-K
Source: 0001641172-25-005546
Chunk: 0

Company: SONIM TECHNOLOGIES INC
Filing Date: 2025-04-21
Form: 8-K
Item: Item 1.01
Chunk 0
---
Item 1.01      Entry into a Material Definitive Agreement.  

On April 21, 2025, following the
approval by the board of directors (the “ Board”) of Sonim Technologies, Inc. (the “ Company”), the Company entered
a limited duration stockholder rights agreement, dated as of April 21, 2025 (the “ Rights Agreement”), by and between the Company
and Equiniti Trust Company, LLC, as Rights Agent.

In connection with the Right Agreement,
the Company declared a dividend of one right (“ Right”) to purchase one-thousandth of one share of the Company’s newly
designated Series A Junior Participating Preferred Stock, par value $0.001 per share (each, a “ Preferred Share” and collectively,
the “ Preferred Shares”), for each outstanding share of the Company’s common stock, par value $0.001 per share, (the
“ Common Stock”) to the stockholders of record as of the close of business on May 2, 2025 (the “ Record Date”).
The Rights Agent currently serves as the Company’s transfer agent with respect to the Common Stock and also has been appointed transfer
agent with respect to the Preferred Shares, if any, that may be issued pursuant to the exercise of rights under the Rights Agreement.
The Rights will expire on April 21, 2026 (the “ Final Expiration Date”), unless the rights are earlier redeemed or exchanged
by the Company. The Company does not have any obligation to seek stockholder approval for the Rights Agreement.

In general terms, the Rights Agreement
imposes a significant penalty upon any person or group that acquires beneficial ownership of 15.5% (or, in the case of passive institutional
investors, an amount that would be above the “ Passive Investor Limitation” defined as “less than 20%”) or more
of the outstanding shares of Common Stock without the approval of the Board. The Rights Agreement was adopted (i) in connection with the
ongoing process of the evaluation of the Company’s strategic alternatives by the special committee of the Board consisting of independent
directors (the “ Special Committee”) formed in response to an unsolicited non-binding acquisition proposal from Orbic North
America, LLC (“ Orbic”) to consummate a change in control transaction (together with Orbic’s subsequent proposal to purchase
outstanding shares of Common Stock for cash consideration of $4.00 per share, the “ Orbic Proposal”) and (