Shares of Sonim Technologies Inc. (NASDAQ:SONM) fell sharply on Monday, plunging 36% following news that the company is conducting a public offering at a price well below its previous market value.
The provider of rugged mobile devices priced an offering of 7.4 million shares at $0.75 each, a steep discount that values the gross proceeds at approximately $5.55 million before fees and other expenses. The transaction is expected to close around July 2, 2025.
Roth Capital Partners is acting as the sole placement agent on the deal, which sparked investor concern due to the dilutive impact on existing shareholders and the low pricing relative to recent trading levels.
The company plans to use the net proceeds to bolster its broader strategic initiatives, fund working capital, and for general corporate purposes. These may include refinancing or paying down existing debt obligations.
The market’s reaction reflects broader worries about Sonim’s need to secure capital under current conditions and the potential pressure additional share issuance could place on the stock in the near term. Discounted offerings often trigger selloffs, especially when investors interpret them as a sign of financial strain or limited access to higher-value funding options.