1.01 |
Entry into a Material Definitive Agreement. |
As previously disclosed in the Current Report on Form 8-K filed with the Securities and Exchange Commission (the “SEC”) on April 14, 2022 (the “Original Report”) by Sonim Technologies, Inc., a Delaware corporation (the “Company”), on April 13, 2022, the Company entered into a Subscription Agreement (the “Subscription Agreement”) with AJP Holding Company, LLC, a Delaware limited liability company (the “Purchaser”), pursuant to which Purchaser agreed to purchase from the Company an aggregate of 20,833,333 shares of the Company’s common stock for a purchase price of $17,500,000 (the “Purchased Shares”). To the extent required by Item 1.01 of Form 8-K, the information contained in (or incorporated by reference into) the Original Report is hereby incorporated by reference into this Item 1.01.
First Closing of Subscription Agreement
On June 28, 2022, the Company held its special meeting of stockholders (the “Special Meeting”), whereby the stockholders of the Company approved the Subscription Agreement and the transactions contemplated thereby by approximately 71.98% of the votes cast.
Following the Special Meeting, on July 13, 2022, the Company and the Purchaser consummated the first closing pursuant to the terms and conditions of the Subscription Agreement, and the Company issued and sold 14,880,952 shares of the Company’s common stock (the “Common Stock”) for the aggregate purchase price of twelve million five hundred thousand dollars ($12,500,000). The entirety of the purchase price paid by the Purchaser was comprised of the funds remitted by or for the benefit of the members of the Purchaser and was transferred to the Purchaser in the form of capital contribution.
At the first closing, 13,928,571 shares of Common Stock were issued to the Purchaser and 952,381 shares of Common Stock were issued to Peter Liu, Chief Executive Officer of the Company as designated by the Purchaser pursuant to the Subscription Agreement. As of July 13, 2022, immediately following the first closing, the Purchaser owned approximately 40.7% of the shares of Common Stock.
The Company offered and sold the referenced portion of the Purchased Shares to the Purchaser and Mr. Liu in reliance upon the exemption from registration provided by Section 4(a)(2) of the Securities Act of 1933, as amended, and Regulation D promulgated thereunder, and the offering was undertaken without general solicitation. The Company relied, in part, upon representations from each of the Purchaser and Mr. Liu that each of the Purchaser and Mr. Liu is an “accredited investor” as such term is defined in Rule 501 of Regulation D.
Support Agreements
In accordance with the terms of the Subscription Agreement, on July 13, 2022, the Company and the Purchaser entered into a support agreement (the “Purchaser Support Agreement”), whereby the Purchaser agreed, among other things, to vote the shares of common stock owned by Purchaser in favor of the election of the Continuing Directors (as such term defined in the Subscription Agreement), as well as such other matters set forth in the Purchaser Support Agreement. The Purchaser Support Agreement also requires, as a condition to the Purchaser transferring any shares of common stock owned by the Purchaser, that the acquirer of such shares of common stock agree to be bound by the terms of the Purchaser Support Agreement. The Purchaser Support Agreement will terminate upon the Director End Time (as such term defined in the Subscription Agreement). The foregoing description of the Purchaser Support Agreement does not purport to be complete and is qualified in its entirety by reference to the Purchaser Support Agreement, which is filed as Exhibit 10.1 to this Current Report on Form 8-K and incorporated herein by reference.