On March 24, multinational electronics company JVCKENWOOD announced it had made a $10-million investment in Siyata mobile peer Sonim Technologies. JVCKENWOOD said its investment would fetch it less than 10 per cent of the firm plus a seat on the company’s board.
“Our investment in Sonim is one of the many steps on our path to bring the best broadband-based capabilities to our customers around the world,” Kaz Aigami, Public Service Sector COO of JVCKENWOOD, said. “Sonim is the acknowledged leader in ultra-rugged LTE B14 handsets for the enterprise and public-safety spaces, and we’re excited to partner with them.”
Kim says this deal is a “positive inference” for Siyata as JVCKenwood is one the leaders in land mobile radio (LMR), the very technology Siyata is displacing.
“JVCKenwood clearly sees the writing on wall for its core LMR business i.e. push-to-talk-over-cellular (PoC) is coming and taking over,” says Kim. “This was a very strategic move by JVCKenwood to hedge its bets. Recall Kodiak is the world’s leading PoC vendor with key partnerships with 5 handset vendors, each addressing specific verticals: Apple, Kyocera, Samsung, Sonim, and Siyata The partnership with Siyata targets professional fleets – trucks, buses, emergency vehicles and government fleets.”
Kim says Siyata is in good shape, financially.
“With the successful closing of its private placement ($5.1M @$0.40), the company has $5.0M in net cash and $9M in working capital. As the company was working capital constrained, funds will be used to accelerate deliveries to customers. Some of which will hit the very last weeks of Q1, but more so beginning in Q2.”
In a research update to clients this week, Kim maintained his “Buy” rating and one-year price target of $0.70 on Siyata Mobile. At press time, shares of the company were up 3.4 per cent to $0.45.
Disclosure: Siyata Mobile is an annual sponsor of Cantech Letter.