Cyngn announces 1-for-150 reverse stock split to meet Nasdaq rules

MENLO PARK, Calif. - Cyngn Inc. (NASDAQ:CYN), a developer of autonomous vehicle technology with a current market capitalization of $3.23 million, has announced a 1-for-150 reverse stock split of its common stock, as approved by the company’s Board of Directors and its stockholders at a special meeting on January 30, 2025. The decision comes after the stock has declined 99% over the past year, trading at $0.15 per share. InvestingPro analysis suggests the stock is currently undervalued. The reverse stock split is scheduled to take effect with the start of trading on February 18, 2025. This corporate action aims to raise the per-share market price of Cyngn’s common stock to ensure compliance with Nasdaq’s minimum bid price requirement and to maintain the company’s listing on the Nasdaq Capital Market. According to InvestingPro data, the company maintains a healthy current ratio of 2.43, though its overall financial health score indicates challenges ahead.

When the reverse stock split becomes effective, every 150 shares of issued and outstanding Cyngn common stock will automatically be combined into one share. This consolidation will apply to all shares of common stock, and stockholders will maintain their percentage of ownership in the company, aside from adjustments due to fractional shares. In cases where fractional shares would result, the company will round up to the nearest whole share at the participant level, not at the beneficial level. All outstanding equity awards and warrants will be adjusted proportionately to reflect the reverse stock split.

Continental Stock Transfer and Trust will serve as the exchange agent and transfer agent for the reverse stock split process. Shareholders with shares held electronically in book-entry form are not required to take any action to receive their post-split shares, as there are no outstanding certificated shares.

Further details about the reverse stock split can be found in Cyngn’s definitive proxy statement filed with the U.S. Securities and Exchange Commission on January 6, 2025, and on the company’s Investor Relations website. Investors should note that Cyngn is scheduled to report earnings in 22 days, on March 7, 2025. Get exclusive access to detailed financial analysis and real-time updates with InvestingPro.

This announcement is based on a press release statement from Cyngn Inc. and does not include any opinions or recommendations. The information provided is intended to offer a factual report on the company’s planned reverse stock split.

In other recent news, Cyngn Inc., a developer of autonomous vehicle technology, has been making significant strides in its operations. The company recently raised $33 million in funding to boost the production and deployment of its DriveMod Tuggers and to advance the commercial release of DriveMod Forklifts. This comes amidst Cyngn’s expansion in the Consumer Packaged Goods (CPG) logistics and automotive industry, where it has deployed its autonomous vehicle systems with a significant CPG distribution company and five major automotive Original Equipment Manufacturers (OEMs) and Tier-1 Suppliers.

On another front, Cyngn is facing a potential delisting from Nasdaq due to non-compliance with the exchange’s minimum bid price requirement. The company plans to appeal this decision and has already received shareholder approval for a reverse stock split ranging from 1-for-5 to 1-for-150 to regain compliance. However, there is no guarantee that the Panel will accept Cyngn’s compliance plan.

In a recent Special Meeting of Stockholders, Cyngn’s shareholders approved several key proposals, including an increase in the number of authorized common stock from 200 million to 400 million shares and the potential for a reverse stock split. These developments reflect Cyngn’s strategic move to adjust its capital structure and align with Nasdaq’s listing requirements.

These recent developments highlight Cyngn’s ongoing efforts to innovate within the field of industrial autonomous vehicles and to comply with Nasdaq’s listing requirements.

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