July 2007 -  Sonim Technologies Raises EUR10m Debt Facility

Situation

• Sonim Technologies Inc ("Sonim") is a US based provider of ruggedised handsets and a mobile Voice Over Internet Protocol (VOIP) platform delivering push-to-talk applications
• Sonim is backed by major venture capital firms including Accel Partners, Apax Partners, 3i and BV Capital
• Sonim has been experiencing a rapid increase in demand for its products and was facing challenges with maintaining sufficient capital to fund its growth. ARC was invited to review the alternatives for growth capital and to execute its preferred alternative.
• More information on Sonim can be found on www.sonimtech.com

Approach

• Following a careful assessment of options ARC recommended a fundraising strategy that sought to provide a stable "draw down" capacity to meet growth needs.
• ARC Associates ("ARC") provided Sonim with ongoing strategic financial advice and structuring throughout the various phases of the transaction
• ARC approached various mezzanine equity and debt facility providers on behalf of Sonim and led the negotiations
• ARC helped prepare the business plan and supported the mezzanine and debt providers in conducting their due diligence review.

Transaction

• After a careful review of the proposed alternatives a single provider of both mezzanine and equity was selected.
• Sonim has completed a mezzanine equity and debt funding of initially €10 million in July 2007 from Investec Bank (UK) Limited. The transaction was led by the Project Finance division of Investec.
• The facility raised will be used to finance Sonim’s costs associated with the manufacture and sale of their XP series Ruggedised Handsets