MENLO PARK, Calif. - Cyngn Inc. (NASDAQ:CYN), a developer of autonomous vehicle technology, has announced a 1-for-100 reverse stock split of its Common Stock, set to take effect after market hours on July 3, 2024. The move, approved by the Board of Directors and authorized by stockholders on June 25, 2024, aims to elevate the company's per share market price to satisfy Nasdaq's minimum bid price requirement.
Once the reverse split is implemented, every 100 shares of Cyngn's issued and outstanding Common Stock will be converted into one share. This consolidation will apply to all shares of the Common Stock, ensuring that stockholders will maintain their proportional equity stake in the company, barring minor adjustments due to rounding for fractional shares, which will not be issued.
The company's Common Stock is expected to commence trading on a post-split basis when the market opens on July 5, 2024, under the unchanged ticker symbol "CYN" and a new CUSIP number 23257B 206. Equity awards and warrants outstanding will also be adjusted in line with the reverse stock split.
Cyngn has appointed Continental Stock Transfer and Trust as the exchange and transfer agent for the reverse stock split process. Shareholders with shares held electronically in book-entry form do not need to take any action to receive post-split shares. Those holding shares through banks, brokers, or other nominees will see their positions automatically adjusted to account for the reverse stock split.
The company, which provides scalable autonomous vehicle solutions to industrial organizations, intends the reverse stock split to help it maintain its listing on the Nasdaq Capital Market. Cyngn's technology suite, including DriveMod, Cyngn Insight, and Cyngn Evolve, aims to address industry challenges such as labor shortages and the increasing demands of eCommerce.
Further information on the reverse stock split can be found in Cyngn's definitive proxy statement filed with the U.S. Securities and Exchange Commission on May 21, 2024, and on the company's Investor Relations website.
This announcement is based on a press release statement and contains forward-looking statements regarding the company's expectations, which are subject to risks and uncertainties. Cyngn does not assume any obligation to update any forward-looking statement.
In other recent news, Cyngn Inc., a developer of autonomous vehicle technology, has made significant strides in various aspects of its operations. The company announced a public stock offering priced at approximately $5 million, and has sought shareholder approval for a reverse stock split to comply with Nasdaq's minimum bid price requirement.
Cyngn has also reported progress in its autonomous vehicle technology, achieving a series of commercial and technological milestones in the first quarter of 2024. These include partnerships with notable brands such as John Deere (NYSE:DE) and Rivian (NASDAQ:RIVN), efficiency gains in autonomous vehicle deployments, and the expansion of its distributor network through a strategic partnership with RobotLAB.
In addition to these developments, Cyngn has been added to RobotLAB's product range, a move that aims to enhance the capabilities of large-scale manufacturers and warehouse operations. The partnership is expected to drive widespread adoption of autonomous vehicles in the manufacturing sector, addressing critical challenges such as labor shortages and safety incidents.
Cyngn's recent developments underscore its commitment to advancing autonomous vehicle technology and maintaining its listing on the Nasdaq exchange. These developments are based on recent press release statements from the company.
InvestingPro Insights
In light of Cyngn Inc.'s recent announcement of a reverse stock split, current and potential investors may find the following data and insights from InvestingPro useful for evaluating the company's financial health and market position:
As of the last twelve months leading up to Q1 2024, Cyngn's adjusted market capitalization stands at a modest $10.09 million. Despite the company's efforts to innovate in the autonomous vehicle space, it has faced significant challenges, as indicated by a sharp -45.19% revenue decline over the same period. Moreover, the company's revenue growth for Q1 2024 plummeted by an alarming -99.37%, reflecting hurdles in realizing its business model or market adoption of its technology.
InvestingPro's analysis also highlights a negative Price/Earnings (P/E) ratio of -0.43, suggesting that investors are wary of future earnings potential. The company's operational struggles are further evidenced by an operating income margin of -3772.72%, pointing to substantial inefficiencies or costs that Cyngn is yet to overcome.
Investors should note that while the company's stock price has seen an 11.41% return over the past week, the longer-term picture is less optimistic, with a -93.87% return over the past year, indicating a significant decline in investor confidence.
For those considering an investment in Cyngn, InvestingPro offers additional insights and metrics that could be crucial for making informed decisions. There are PRONEWS24 additional InvestingPro Tips available, which could provide deeper analysis on the company's valuation, financial health, and future prospects. Interested readers can use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription to access these valuable tips and make more data-driven investment choices.
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