MENLO PARK, Calif. - Cyngn Inc. (NASDAQ:CYN), an AI autonomous driving software company, has finalized a registered direct offering, securing $9 million in gross proceeds. The offering involved the sale of 15 million shares of common stock, or pre-funded warrants as an alternative, at a price of $0.60 per share or $0.5999 per warrant. The stock currently trades at $0.85, with a market capitalization of just $1.97 million, following a significant YTD decline of 94.4%.
The company disclosed on Tuesday that the funds raised, before accounting for placement agent fees and other expenses, would bolster general corporate purposes and working capital. Aegis Capital Corp. served as the exclusive placement agent for the offering, while Sichenzia Ross Ference Carmel LLP and Kaufman & Canoles, P.C. provided legal counsel to Cyngn and Aegis Capital Corp., respectively.
The offering was made under an effective shelf registration statement on Form S-3, which the SEC declared effective on June 13, 2023. Details of the offering are available in the final prospectus supplement and accompanying prospectus filed with the SEC, accessible on the SEC's website.
Cyngn specializes in developing autonomous vehicle technology for industrial use, aiming to address labor shortages and enhance productivity and safety within the sector. Despite current revenue of just $0.1M in the last twelve months, analysts maintain a $12 price target for the stock. Get deeper insights and exclusive financial metrics with InvestingPro. The company's DriveMod Kit can be retrofitted into existing industrial vehicles or installed in new ones, allowing for a cost-effective transition to autonomous operations.
The press release contains forward-looking statements regarding Cyngn's product development and business outlook, which are subject to risks and uncertainties that could cause actual results to differ materially from those projected.
This news article is based on a press release statement from Cyngn Inc.
In other recent news, Cyngn Inc., an AI autonomous driving software developer, has announced a follow-on public offering aimed at raising approximately $20 million. The offering includes over 12 million Common Units and Pre-Funded Units, each with accompanying warrants for additional common stock purchases. Aegis Capital Corp. is acting as the exclusive placement agent for this offering. Cyngn Inc. has also secured $3.5 million in a private placement, with the funds earmarked for working capital and general corporate purposes.
In terms of personnel, the company has appointed Marty Petraitis, a seasoned professional in technology and industrial automation, as its new Vice President of Sales. Cyngn has also partnered with Raymond (NS:RYMD) West and an unnamed leading automotive supplier for the deployment of its DriveMod Tuggers.
In technological advancements, the company has made significant enhancements in its proprietary computer vision technology, now incorporated in its DriveMod autonomous vehicle system. Cyngn has been granted two new patents, taking its total to 21, aimed at improving the precision of sensor data and the operation of autonomous vehicles in dynamic environments. The company has expanded its DriveMod solution to support outdoor operations, expected to boost material transport capabilities in large industrial settings.
Lastly, Cyngn has entered into strategic partnerships with brands such as John Deere (NYSE:DE), Rivian (NASDAQ:RIVN), and RobotLAB. These partnerships are part of the company's strategy to strengthen its position in the competitive autonomous vehicle market.
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