Sonim Technologies, a provider of ultra-rugged mobile devices, has closed the first tranche of its agreement with AJP Holding Company, whereby AJP will purchase $17.5 million in Sonim equity.

The agreement with AJP supports a new strategy whereby Sonim will expand into the semi-rugged 5G markets.

“Sonim’s relationships with Tier One mobile carriers in North America have generated almost $16 million in confirmed orders for our next generation rugged devices over the past couple of months, demonstrating the exciting opportunity we hope to tap by bringing a wider array of 5G semi-rugged devices to market,” said Peter Liu, Sonim’s CEO. “We are moving ahead to leverage our ODM relationships to accelerate new products, reduce development and manufacturing costs and maximize the value of Sonim’s brand as we work to make Sonim the top middle market rugged and industrial device provider in North America.”

B. Riley Securities is serving as financial advisor to Sonim Technologies in the transaction, and O’Melveny & Myers LLP is serving as legal counsel. Venable LLP is serving as counsel to AJP.