Cyngn Announces Reverse Stock Split

Rhea-AI Summary

Cyngn announced a 1-for-100 reverse stock split of its outstanding Common Stock to regain compliance with Nasdaq's minimum bid price requirement. Approved by stockholders on June 25, 2024, the reverse split will be effective at 5 p.m. ET on July 3, 2024, with post-split trading starting July 5, 2024, under the symbol 'CYN' with a new CUSIP number 23257B 206. The reverse stock split will merge every 100 shares into 1, affecting all stockholders equally and proportionately adjusting equity awards and warrants. No fractional shares will be issued, with rounding up applied instead. Continental Stock Transfer and Trust will act as the exchange and transfer agent, and stockholders holding shares electronically need not take any action. More details are in Cyngn's definitive proxy statement filed with the SEC on May 21, 2024.

Positive

• A 1-for-100 reverse stock split aims to increase the per share market price of CYN to regain Nasdaq compliance.
• The reverse stock split has been approved by shareholders, showing company-wide support.

Negative

• The drastic 1-for-100 reverse stock split could signal potential risks or instability, potentially alarming investors.

MENLO PARK, Calif., July 2, 2024 /PRNewswire/ -- Cyngn Inc. (the "Company" or "Cyngn") (Nasdaq: CYN) today announced that it will proceed with a 1-for-100 reverse stock split ("Reverse Stock Split") of its outstanding shares of Common Stock following approval by its Board of Directors. This ratio is within the ratio range approved by stockholders at the Company's annual stockholder meeting held on June 25, 2024.

The Reverse Stock Split is expected to become effective at 5 p.m., Eastern Time, on July 3, 2024. Cyngn expects the Company's Common Stock will begin trading on a post-split basis at the market open on July 5, 2024, under the symbol "CYN" with the new CUSIP number 23257B 206. The primary objective of the Reverse Stock Split is to increase the per share market price of the Common Stock to regain compliance with the minimum bid price requirement for continued listing on the Nasdaq Capital Market.

When the Reverse Stock Split is effective, every 100 shares of Cyngn Common Stock issued and outstanding will be combined automatically into 1 share of Common Stock. The Reverse Stock Split will apply equally to all outstanding shares of Common Stock and each stockholder will hold the same percentage Common Stock outstanding immediately following the Reverse Stock Split, except for adjustments that may result from the treatment of fractional shares. No fractional shares will be issued in connection with the Reverse Stock Split, instead fractional shares will be rounded up. Additionally, all equity awards and warrants outstanding immediately prior to the Reverse Stock Split will be proportionately adjusted.

Continental Stock Transfer and Trust is acting as the exchange agent and transfer agent for the Reverse Stock Split. Stockholders holding their shares electronically in book-entry form are not required to take any action to receive post-split shares. The Company does not have any outstanding certificated shares. Shareholders owning shares through a bank, broker or other nominee will have their positions adjusted to reflect the Reverse Stock Split in accordance with their respective bank's, broker's, or nominee's particular processes.

Additional information about the Reverse Stock Split can be found in Cyngn's definitive proxy statement (Form DEF 14A) filed with the U.S. Securities and Exchange Commission (the "SEC") on May 21, 2024 and on Cyngn's Investor Relations website at investors@cyngn.com.

About Cyngn

Cyngn develops and deploys scalable, differentiated autonomous vehicle technology for industrial organizations. Cyngn's self-driving solutions allow existing workforces to increase productivity and efficiency. The Company addresses significant challenges facing industrial organizations today, such as labor shortages, costly safety incidents, and increased consumer demand from eCommerce.

Cyngn's DriveMod Kit can be installed on new industrial vehicles at end of line or via retrofit, empowering customers to seamlessly adopt self-driving technology into their operations without high upfront costs or the need to completely replace existing vehicle investments.

Cyngn's flagship product, its Enterprise Autonomy Suite, includes DriveMod (autonomous vehicle system), Cyngn Insight (customer-facing suite of AV fleet management, teleoperation, and analytics tools), and Cyngn Evolve (internal toolkit that enables Cyngn to leverage data from the field for artificial intelligence, simulation, and modeling).

Where to Find Cyngn

• Website: https://cyngn.com
• Twitter: http://twitter.com/cyngn
• LinkedIn: https://www.linkedin.com/company/cyngn
• YouTube: https://www.youtube.com/@cyngnhq

Investor Contact:
Don Alvarez
investors@cyngn.com 

Media Contact
Luke Renner
media@cyngn.com 

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Any statement that is not historical in nature is a forward-looking statement and may be identified by the use of words and phrases such as "expects," "anticipates," "believes," "will," "will likely result," "will continue," "plans to," "potential," "promising," and similar expressions. These statements are based on management's current expectations and beliefs and are subject to a number of risks, uncertainties and assumptions that could cause actual results to differ materially from those described in the forward-looking statements, including the risk factors described from time to time in the Company's reports to the SEC, including, without limitation the risk factors discussed in the Company's annual report on Form 10-K filed with the SEC on March 7, 2024. Readers are cautioned that it is not possible to predict or identify all the risks, uncertainties and other factors that may affect future results No forward-looking statement can be guaranteed, and actual results may differ materially from those projected. Cyngn undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events, or otherwise.

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SOURCE Cyngn

FAQ

What is the effective date for Cyngn's 1-for-100 reverse stock split?

The reverse stock split will be effective at 5 p.m. ET on July 3, 2024.

When will Cyngn's stock start trading on a post-split basis under the symbol CYN?

Cyngn's stock will start trading on a post-split basis on July 5, 2024.

Why is Cyngn conducting a 1-for-100 reverse stock split?

The reverse stock split aims to increase the per share market price of CYN to meet Nasdaq's minimum bid price requirement.

How will the reverse stock split affect Cyngn stockholders?

Every 100 shares of Cyngn Common Stock will be combined into 1 share, with no fractional shares issued and rounding up applied.

Who is handling the exchange and transfer for Cyngn's reverse stock split?

Continental Stock Transfer and Trust is the exchange and transfer agent for the reverse stock split.

Will Cyngn stockholders need to take action for the reverse stock split?

Stockholders holding shares electronically do not need to take any action to receive post-split shares.