Cyngn (NASDAQ: CYN) stock tumbled over 5% in the intraday trading Tuesday after the company launched a $5 million public stock offering.
Cyngn (NASDAQ: CYN) has disclosed the pricing details of its public offering, conducted on a firm commitment basis. The company expects the gross proceeds from this offering will total around $5.0 million, before accounting for fees and other associated expenses.
The offering comprises 50,000,000 (50 million) shares of common stock and pre-funded warrants. Each share of common stock is offered at a purchase price of $0.10 per share, while pre-funded warrants are priced at $0.99999 each.
In addition, Cyngn has granted Aegis Capital Corp. a 45-day option to acquire up to 15% of the total number of shares or pre-funded warrants sold in the offering, exclusively to cover over-allotments, if any.
The company expects to close the offering on April 25, 2024, contingent upon fulfilling customary closing conditions.
The company plans to use the net proceeds for general corporate purposes, including working capital.
Aegis Capital Corp. is acting as the sole bookrunner for the offering, overseeing the process. Legal counsel for the offering includes Sichenzia Ross Ference Carmel LLP, representing Cyngn, and Kaufman & Canoles, P.C., acting as counsel to Aegis.
Cyngn (NASDAQ: CYN) Stock Reaction
At the time of this report, the price of CYN stock stands at $0.11, indicating a 5.79% decrease from the previous trading session. This week, it has seen a 13.21% surge in value. Trading activity has seen 323,214,997 (323.21 million) shares changing hands, significantly higher than the average daily volume of 10.23 million.
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