Cyngn Inc. (NASDAQ:CYN), a company specializing in computer programming services, has announced a reverse stock split of its common stock at a ratio of 1-for-100. The decision, effective as of July 3, 2024, was made following authorization from the company's stockholders at the annual meeting held on June 25, 2024.
The Board of Directors of Cyngn determined the reverse stock split ratio and proceeded to file a Certificate of Amendment to the Fifth Amended and Restated Certificate of Incorporation with the Secretary of State of Delaware to enact the change. This strategic move comes as an effort to adjust the number of outstanding shares of common stock, which could potentially increase the per-share trading price of the company's common stock.
The reverse stock split does not alter the company's market capitalization but is expected to reduce the number of shares a stockholder owns, proportionate to the 1-for-100 ratio. However, the total value of shares held by each stockholder remains the same, barring any market price fluctuations.
Cyngn's action to modify the rights of its security holders and amend its articles of incorporation is a significant corporate event. The Certificate of Amendment, filed as Exhibit 3.1 in the Current Report on Form 8-K, has been made public as part of the company's regulatory filings.
Investors and interested parties can find more details about the reverse stock split in the company's 8-K filing, which also includes the Certificate of Amendment as an exhibit. Cyngn, incorporated in Delaware and based in Menlo Park, California, has not provided any forward-looking statements or implications regarding the potential impact of the reverse stock split on its financial position or market performance.
This report is based solely on the information provided in the company's recent SEC filing and does not include any speculative or predictive content.
In other recent news, Cyngn Inc., a developer of autonomous vehicle technology, has made significant strides in its field. The company has secured a new patent for adaptive decision-making in dynamic environments, which marks its 21st U.S. patent.
This development adds to Cyngn's growing intellectual property portfolio, which includes patents related to autonomous driving validation and adaptive traffic rule-based decision making.
Cyngn has also sought approval from its shareholders for a reverse stock split to maintain its listing on the Nasdaq exchange. In addition, the company has announced a public stock offering priced at approximately $5 million, with the net proceeds expected to be used for general corporate purposes, including working capital.
Furthermore, Cyngn has been expanding its reach through strategic partnerships with notable brands such as John Deere (NYSE:DE) and Rivian (NASDAQ:RIVN), and with robotics integrator, RobotLAB. As a result of these partnerships, Cyngn's autonomous DriveMod Tugger vehicles have been added to RobotLAB's product range. These recent developments demonstrate Cyngn's continued progress in the autonomous vehicle technology sector.
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