Cyngn shareholders approve stock amendments

Published 30/01/2025, 23:46
Cyngn shareholders approve stock amendments

MENLO PARK, CA – In a significant development for Cyngn Inc. (NASDAQ:CYN), currently trading at $0.33 and showing a dramatic 98% decline over the past year, the company announced today that its shareholders have voted in favor of several key proposals during a Special Meeting of Stockholders. The meeting, which took place on January 30, 2025, saw the approval of an amendment to increase the number of authorized common stock and the potential for a reverse stock split.

The company, headquartered in Menlo Park, California, and operating within the computer programming services sector, with a market capitalization of just $8 million, received the necessary majority from its stockholders to amend its certificate of incorporation. This amendment will raise the authorized common stock from 200 million to 400 million shares. According to InvestingPro analysis, the company maintains a healthy current ratio of 2.43, indicating sufficient short-term liquidity despite its small size.

Additionally, shareholders authorized the board of directors to enact a reverse stock split of the outstanding shares of common stock at a ratio ranging from one-for-five (1-for-5) to one-for-one hundred fifty (1-for-150), at the board’s discretion, within one year of the meeting date.

The third proposal approved was the issuance of warrants and shares of common stock underlying the warrants, which are related to a securities offering completed on December 23, 2024, ensuring compliance with Nasdaq listing rule 5635(d).

Lastly, stockholders consented to adjourn the Special Meeting if necessary to solicit additional proxies if there were insufficient votes to approve the previously mentioned proposals.

The final vote counts for the proposals were as follows:

1. Increase in the number of authorized common stock received 868,202 votes for, 491,144 against, and 10,340 abstained.

2. Reverse stock split had 850,890 votes for, 509,313 against, and 9,483 abstained.

3. Issuance of warrants and underlying shares received 656,308 votes for, 147,693 against, 6,121 abstained, and 559,564 broker non-votes.

4. Adjournments of the Special Meeting, if necessary, received 861,610 votes for, 477,510 against, and 30,566 abstained.

The results reflect a strategic move by Cyngn to adjust its capital structure and align with Nasdaq’s listing requirements. InvestingPro analysis suggests the stock is currently undervalued, though the company’s overall financial health score remains weak. For deeper insights into Cyngn’s financial metrics and growth potential, including exclusive ProTips and detailed valuation analysis, subscribers can access comprehensive data through InvestingPro. This information is based on a press release statement from Cyngn Inc. and provides a factual summary of the outcomes from the Special Meeting of Stockholders.

In other recent news, Cyngn Inc., a developer of autonomous vehicle technology, has announced a series of significant developments. The company raised $33 million in funding, secured $9 million from a registered direct offering, and set terms for a $20 million follow-on public offering. These funds are expected to accelerate Cyngn’s growth and drive commercialization efforts. Cyngn has also successfully deployed its DriveMod Tugger within a significant Consumer Packaged Goods distribution company’s operations, marking another strategic advancement in its reach within the manufacturing and distribution sectors.

In addition, Cyngn reported significant progress in the automotive manufacturing sector with its DriveMod Tugger, having successfully deployed these systems with five major automotive Original Equipment Manufacturers (OEMs) and Tier-1 Suppliers across the United States and Mexico. The company also announced the appointment of Marty Petraitis as its new Vice President of Sales, and formed strategic partnerships with brands such as John Deere (NYSE:DE), Rivian (NASDAQ:RIVN), and RobotLAB.

Cyngn has made significant enhancements in its proprietary computer vision technology, now incorporated in its DriveMod autonomous vehicle system. This system has been implemented in industrial vehicles manufactured by BYD (SZ:002594), Motrec, and Columbia Vehicle Group. Furthermore, Cyngn has been granted 21 patents aimed at enhancing the precision of sensor data and the operation of autonomous vehicles in dynamic environments. These are the latest developments from Cyngn.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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