Sonim Technologies (SONM) shares surged more than 54% in Wednesday's premarket session after it said it signed a non-binding letter of intent for a proposed reverse takeover with an unnamed US-based private company.
Under the terms of the deal, Sonim shareholders would retain $17.5 million of equity in the combined company and shareholders of the private company will hold a majority stake in the combined company.
The private company, which is building out high-performance computing artificial intelligence factories, would be valued at $300 million, Sonim said.
The deal still needs to clear customary closing conditions, regulatory approval, approval by Sonim stockholders, and Sonim's completion of a legacy business sale. Upon the closing of the reverse merger, the combined company will change its corporate name and ticker symbol while still being listed on Nasdaq, Sonim said.
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