Cyngn Inc. Raises $15 Million in Recent Stock Offering
Cyngn Inc. (NASDAQ: CYN) has announced a significant milestone in its financial journey by entering into definitive agreements for a registered direct offering. This offering, made to a single institutional investor, involves approximately $15 million in Common Stock and pre-funded warrants at a price of $5.01 per share.
Details of the Offering
The offering will consist of the sale of 2,994,012 shares of Common Stock. In addition, it includes pre-funded warrants, which allow for the immediate exercise at a minimal price. The public offering price establishes that the total gross proceeds to Cyngn are expected to be around $15 million. The transaction closes soon, pending the usual closing conditions.
Use of Proceeds
With this influx of capital, the company plans to apply the net proceeds towards general corporate purposes and enhancing working capital. This strategic move aims to better position Cyngn for future growth and innovation initiatives within the autonomous vehicle technology sector, particularly within industrial applications.
Legal and Financial Guidance
Aegis Capital Corp. is serving as the exclusive placement agent for this offering, while Sichenzia Ross Ference Carmel LLP is providing legal consultation for the company. Kaufman & Canoles, P.C. represents Aegis Capital Corp. As part of the offering procedure, Cyngn will file a final prospectus supplement with necessary details and terms for interested parties.
About Cyngn and Its Innovations
Cyngn is at the forefront of developing autonomous vehicle technology tailored for industrial contexts, such as manufacturing and logistics. These efforts aim to address pressing challenges faced by industrial organizations, including labor shortages and safety concerns.
The company's flagship technology, DriveMod, enables clients to seamlessly integrate self-driving capabilities into their operations without exorbitant initial investments or complicated infrastructure modifications. Currently, DriveMod technology is available on select models of Motrec MT-160 Tuggers and BYD Forklifts, enhancing productivity in various settings.
The DriveMod Tugger
The DriveMod Tugger is a remarkable solution, capable of hauling loads of up to 12,000 lbs. It can operate both indoors and outdoors, targeting a productive payback period of around two years. This efficiency allows businesses to streamline operations significantly.
The DriveMod Forklift
In addition to the Tugger, the DriveMod Forklift is engineered to lift heavy and non-standard pallets, offering flexibility and reliability. Currently, it is available to select customers, demonstrating Cyngn's commitment to innovative solutions across diverse industrial applications.
Contact Information for Investors and Media
For further inquiries regarding this offering or company developments, interested parties can reach out to:
Investor Contact:
Natalie Russell, Interim CFO
Media Contact:
Luke Renner, Head of Marketing
Frequently Asked Questions
What is the amount raised by Cyngn in this offering?
Cyngn has raised $15 million in total from this direct offering.
What will Cyngn use the proceeds for?
The funds will be used for general corporate purposes and to improve working capital.
Who is managing the offering?
Aegis Capital Corp. is the exclusive placement agent for Cyngn's offering.
What technology does Cyngn specialize in?
Cyngn specializes in autonomous vehicle technologies tailored for industrial applications.
What is DriveMod?
DriveMod is Cyngn's technology that enables seamless integration of self-driving capabilities in industrial environments.
