Reported Earlier: Sonim Technologies Signs LOI For Potential $20M Asset Sale To Social Mobile, Including $5M Earn-Out

Sonim Technologies, Inc. (NASDAQ:SONM), a leading provider of rugged mobile solutions, today announced the signing of a Letter of Intent (LOI) with Social Mobile®, a leading provider of enterprise mobility solutions.

• Pursuant to the LOI, Social Mobile and Sonim intend to enter into a definitive agreement for the potential acquisition by Social Mobile of substantially all of the assets of Sonim and its direct and indirect subsidiaries (the "Transaction"). The LOI contemplates a purchase price of up to $20 million, including up to $5 million in earn-out consideration contingent upon achieving the target revenue as set forth in the LOI.
• The LOI contemplates customary working capital and escrow terms.
• The LOI grants Social Mobile an exclusivity period to negotiate and consummate the Transaction and permits Sonim to continue evaluating potential reverse take-over transactions (RTO) opportunities.

The Special Committee of Sonim's Board of Directors, in consultation with its financial adviser, concluded that the proposed Transaction, if consummated, represents a compelling strategic opportunity to maximize value to Sonim's stockholders while supporting the continued advancement of the Company's innovative technology offerings.

Following an exhaustive review of strategic alternatives, the Special Committee determined that the proposed Transaction with Social Mobile best aligns with its goal of maximizing stockholder value. Key highlights of the LOI include:

• a clearly defined structure;
• secured financing without contingencies; and
• an opportunity for Sonim to engage in an RTO.

The Transaction is subject to customary closing conditions and approvals.