Cyngn Stock Surges As Self-Driving Software Maker Raises Financing Through Back-to-Back Equity Offerings: Retail’s Optimistic
By Stocktwits Inc | First Published Dec 31, 2024, 2:21 PM ISTThe company plans to use the net proceeds for general corporate purposes and working capital.
Shares of Cyngn Inc. ($CYN) were up 29% on Monday after the company announced the pricing of another direct offering, lifting retail mood.
The offering, expected to close on December 31, includes about 15 million shares of common stock and/or pre-funded warrants to acquire common stock in the registered direct offering. The purchase price of each share is $0.60, or $0.5999 for each pre-funded warrant, and equal to the public offering price per share to be sold in the offering minus an exercise price of $0.0001 per pre-funded warrant, the company said in a statement.
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The company plans to use the net proceeds of about $9 million from the offering, together with its existing cash, for general corporate purposes and working capital. Aegis Capital Corp acted as the exclusive placement agent for the offering.
Cyngn, a developer of AI-powered autonomous driving software for industrial applications, said the offering was targeted at certain institutional investors.
Last week, Cyngn did another offering, consisting of 12,422,360 common units, with gross proceeds to the company of about $20 milion, before the deduction of placement agent fees and other estimated offering expenses payable by the company. The Fly.com reported.
Retail sentiment on Stocktwits was largely optimistic but some commenters were concerned about the possible impact that the two back-to-back offerings would have on the stock price.
Cyngn, which recently secured two patents in self-driving technology, helps existing workforces increase productivity and efficiency through its self-driving solutions.
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