MENLO PARK,
Calif., Dec. 20, 2024 /PRNewswire/ -- Cyngn
Inc. (the "Company" or "Cyngn") (Nasdaq: CYN), a developer of
AI-powered autonomous driving software solutions for industrial
applications, today announced the pricing of a follow on offering,
priced at the market, with gross proceeds to the Company expected
to be approximately $20.0 million,
before deducting placement agent fees and other estimated offering
expenses payable by the Company.
The offering consists of
12,422,360 Common Units (or Pre-Funded Units), each consisting of
one (1) share of Common Stock or one (1) Pre-Funded Warrant to
purchase one (1) share of Common Stock, one
(1) Series A Common Warrant
to purchase one (1) share of Common Stock per warrant, and
one (1)
Series B Common Warrant to purchase one (1) share of Common
Stock per warrant. The public offering price per
Common Unit is $1.61 (or $1.6099 for each Pre-Funded Unit, which is equal
to the public offering price per Common Unit to be sold in the
offering minus an exercise price of $0.0001 per Pre-Funded Warrant). The Pre-Funded
Warrants will be immediately exercisable and may be exercised at
any time until exercised in full. For each Pre-Funded Unit sold in
the offering, the number of Common Units in the offering will be
decreased on a one-for-one basis. The initial exercise
price of each Series A Common Warrant is $2.0125 per share of Common Stock. The Series A
Common Warrants are exercisable upon stockholder approval and
expire 60 months thereafter. The initial exercise price
of each Series B Common Warrant is $2.0125 per share of Common Stock or pursuant to
an alternative cashless exercise option. The Series B Common
Warrants are exercisable upon stockholder approval and expire 30
months thereafter.
Aggregate gross proceeds to the Company are
expected to be approximately $20.0
million. The transaction is expected to close on or about
December 23, 2024, subject to the
satisfaction of customary closing conditions. The Company expects
to use the net proceeds from the offering, together with its
existing cash, for working capital and other general corporate
purposes, including repayment of outstanding senior
notes.
Aegis Capital Corp. is acting as
Exclusive Placement Agent for the
offering. Sichenzia Ross Ference
Carmel LLP is acting as counsel to the Company. Kaufman &
Canoles, P.C. is acting as counsel to Aegis Capital
Corp.
A registration statement on Form S-1 (No.
333-283514) previously filed with the U.S. Securities and Exchange
Commission (the "SEC") on November 27,
2024 was declared effective by the SEC on
December 19, 2024.
The offering is being made only by means of a prospectus. A
final prospectus describing the terms of the proposed offering will
be filed with the SEC and will be available on the SEC's website
located at www.sec.gov. Electronic copies
of the preliminary prospectus supplement and the accompanying
prospectus may be obtained, when available, by contacting Aegis
Capital Corp., Attention: Syndicate Department, 1345 Avenue of the
Americas, 27th floor, New York, NY
10105, by email at syndicate@aegiscap.com, or by telephone at +1
(212) 813-1010. Before investing in this offering, interested
parties should read in their entirety the prospectus, which
provides more information about the Company and such
offering.
This press release shall not constitute an
offer to sell or a solicitation of an offer to buy, nor shall there
be any sale of these securities in any state or jurisdiction in
which such an offer, solicitation or sale would be unlawful prior
to registration or qualification under the securities laws of any
such state or jurisdiction.
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 for 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).
Forward-Looking
Statements
The foregoing material may contain
"forward-looking statements" within the meaning of Section 27A of
the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934, each as amended. Forward-looking statements
include all statements that do not relate solely to historical or
current facts, including without limitation statements
regarding the timing of closing, expected use of
proceeds of the offering, the completion of the offering, the
satisfaction of customary closing conditions related to the
offering, and can be identified by the use of words
such as "may," "will," "expect," "project," "estimate,"
"anticipate," "plan," "believe," "potential," "should," "continue"
or the negative versions of those words or other comparable words.
Forward-looking statements are not guarantees of future actions or
performance. These forward-looking statements are based on
information currently available to the Company and its current
plans or expectations and are subject to a number of risks and
uncertainties that could significantly affect current plans. Should
one or more of these risks or uncertainties materialize, or the
underlying assumptions prove incorrect, actual results may differ
significantly from those anticipated, believed, estimated,
expected, intended, or planned. Although the Company believes that
the expectations reflected in the forward-looking statements are
reasonable, the Company cannot guarantee future results,
performance, or achievements. Except as required by applicable law,
including the security laws of the United
States, the Company does not intend to update any of the
forward-looking statements to conform these statements to actual
results.
Investor
Contact:
Donald
Alvarez,
CFO
investors@cyngn.com
Media Contact:
Luke
Renner, Head of
Marketing
media@cyngn.com
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SOURCE Cyngn
