Cyngn announces $15 million registered direct offering

MOUNTAIN VIEW, Calif. - Autonomous vehicle technology company Cyngn Inc. (NASDAQ:CYN), currently valued at $8.78 million in market capitalization, announced Thursday it has entered into definitive agreements for a $15 million registered direct offering with a single institutional investor. According to InvestingPro data, the company shows a WEAK financial health score, highlighting the strategic importance of this capital raise.

The offering consists of 2,994,012 shares of common stock and pre-funded warrants at a price of $5.01 per share, according to a press release statement from the company. The pre-funded warrants will be immediately exercisable at an exercise price of $0.00001 per warrant. This pricing comes as the company’s revenue showed a decline of 34% in the last twelve months, with current revenue at $0.41 million.

The transaction is expected to close on or about June 27, 2025, subject to customary closing conditions. Cyngn plans to use the net proceeds for general corporate purposes and working capital.

Aegis Capital Corp. is serving as the exclusive placement agent for the offering, with Sichenzia Ross Ference Carmel LLP acting as counsel to Cyngn and Kaufman & Canoles, P.C. representing Aegis.

The registered direct offering is being conducted under an effective shelf registration statement previously filed with the U.S. Securities and Exchange Commission.

Cyngn develops autonomous vehicle technology for industrial organizations, focusing on solutions for manufacturers and logistics companies. The company’s DriveMod technology is currently available on Motrec MT-160 Tuggers and BYD Forklifts. Based on InvestingPro’s Fair Value analysis, the stock appears to be overvalued at current levels, with analysts maintaining a Strong Buy consensus and a $12 price target.

In other recent news, Cyngn Inc. has been actively expanding its intellectual property portfolio with the issuance of its 22nd U.S. patent, titled "System and Methods of Off-Board Centric Autonomous Driving Computation." This patent introduces a cloud-based approach for operating autonomous vehicles, potentially reducing the need for heavy onboard computing hardware. The company also received a notice of allowance for another patent aimed at enhancing the modularity of sensor systems in industrial machines. These developments are part of Cyngn’s strategy to provide innovative solutions for industrial organizations without significant upfront costs or infrastructure changes.

Additionally, Cyngn showcased its autonomous vehicle technology in collaboration with NVIDIA at the Automatica 2025 robotics and automation event. The company’s DriveMod software, built on NVIDIA’s Isaac platform, is currently being used in commercial settings to address challenges like labor shortages and safety incidents. Cyngn’s CEO, Lior Tal, emphasized the company’s commitment to advancing its DriveMod solution and achieving long-term technological and commercial differentiation. These recent advancements highlight Cyngn’s ongoing efforts to strengthen its position in the autonomous vehicle industry.

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