It was another wild week for Sonim Technologies (SONM).
The struggling rugged device maker fielded yet another unsolicited takeover bid, forcing its board to develop an alternative reverse merger plan in response.
Sonim stock briefly doubled on June 16, surging to $1.85, after receiving a buyout proposal from Chinese rugged smartphone maker DOOGEE.
The unsolicited offer reportedly valued Sonim at $3.6 per share, a significant premium to its recent trading range, but this wasn’t Sonim’s first unexpected offer.
Back in January, mobile solutions provider Orbic North America submitted an unsolicited acquisition proposal, prompting the board to form a Special Committee to evaluate strategic alternatives.
Most recently, on June 2, Sonim announced it had signed a letter of intent with Social Mobile, under which Social Mobile would acquire Sonim’s operating assets for up to $20 million.
As part of that deal, Sonim is pursuing a reverse merger that would value the company at roughly $15 million.
(A reverse merger allows a private company to go public by acquiring an existing public company, bypassing the traditional (and costly) IPO process.)
Sonim is now urging shareholders to approve its slate of director nominees at the annual meeting scheduled for July 18.
A brutal run for Sonim investors
After the early-week pop, SONM stock quickly lost steam, closing Friday down 12.4% at $1.27. At that level, the company’s market capitalization sits at just $13.1 million.
With a valuation well below $50 million, Sonim remains firmly in nano-cap territory, making it vulnerable to extreme price swings.
And while Sonim's 2025 roller coaster has made headlines, its long-term track record is even more sobering.
The stock is down nearly 63% year-to-date, 83% over the past 12 months, and has shed 99% of its value since going public in 2019.
That collapse largely reflects weak operating performance.
In Q1, Sonim reported revenue of just $16.7 million, well below analyst estimates of $25.41 million. While net income and gross margins showed modest improvement, challenges remain.
The company continues to battle rising expenses, strained cash flow, and ongoing challenges tied to its strategic pivot away from white-label devices toward rugged smartphones and mobile hotspots.
For full-year 2024, Sonim reported a 38% drop in revenue to $58.3 million, along with a net loss of $33.6 million or negative $7.13 per share.
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