MENLO PARK, Calif. - Cyngn Inc. (NASDAQ:CYN), an AI autonomous driving software developer with a current market capitalization of just $3.92 million, has set the terms for a follow-on public offering expected to raise approximately $20 million before fees and expenses. The company's stock has declined nearly 89% year-to-date, according to InvestingPro data. The offering, announced today, consists of over 12 million Common Units and Pre-Funded Units, each with accompanying warrants to purchase additional shares of common stock.
Each Common Unit is priced at $1.61, with Pre-Funded Units priced at $1.6099, a minimal discount accounting for the warrant exercise price. The Pre-Funded Warrants can be exercised immediately and will remain so until fully exercised. The offering also includes Series A and Series B Common Warrants with an exercise price of $2.0125 per share, exercisable upon shareholder approval. Series A Warrants will expire after 60 months, while Series B Warrants offer a cashless exercise option and will expire after 30 months.
Cyngn anticipates the offering will close on or about December 23, 2024, subject to customary closing conditions. The net proceeds are intended for general corporate purposes, including working capital and repayment of outstanding senior notes.
Aegis Capital Corp. is the exclusive placement agent, with Sichenzia Ross Ference Carmel LLP and Kaufman & Canoles, P.C. serving as legal counsel to Cyngn and Aegis Capital Corp., respectively.
The offering is pursuant to a registration statement declared effective by the U.S. Securities and Exchange Commission on December 19, 2024, and is made through a prospectus available on the SEC's website.
This initiative follows Cyngn's efforts to address industrial challenges, such as labor shortages and safety incidents, with its scalable autonomous vehicle technology. Its DriveMod Kit, part of the Enterprise Autonomy Suite, enables retrofitting of industrial vehicles for autonomous operation. Despite an analyst price target of $12, the company faces significant challenges, with an EBITDA of -$22.44 million and revenue of just $0.1 million in the last twelve months. InvestingPro subscribers have access to dozens more financial metrics and exclusive insights about Cyngn's financial health and growth prospects.
The information in this article is based on a press release statement from Cyngn. The company cautions that the press release contains forward-looking statements subject to risks and uncertainties that could cause actual results to differ materially from those projected or expected. InvestingPro's analysis indicates a WEAK overall financial health score of 1.15, suggesting investors should carefully consider the risks involved.
In other recent news, Cyngn Inc. has secured $3.5 million in a private placement, with Aegis Capital Corp. acting as the placement agent. The funds are intended for working capital and general corporate purposes. Additionally, the company has made significant enhancements in its proprietary computer vision technology, now incorporated in its DriveMod autonomous vehicle system.
Cyngn has also appointed Marty Petraitis, a seasoned professional in the technology and industrial automation sector, as its new Vice President of Sales. Furthermore, the company has secured major deals such as a partnership with Raymond (NS:RYMD) West and an agreement with a leading automotive supplier for the deployment of DriveMod Tuggers.
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.
Finally, Cyngn has entered into strategic partnerships with brands such as John Deere (NYSE:DE), Rivian (NASDAQ:RIVN), and RobotLAB. These recent developments demonstrate Cyngn's commitment to innovation and its strategy to strengthen its position in the competitive autonomous vehicle market.
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