Cyngn Announces Reverse Stock Split
Cyngn (Nasdaq: CYN) has announced a 1-for-150 reverse stock split of its Common Stock, following Board approval and stockholder authorization from January 30, 2025. The split will be effective at market open on February 18, 2025, with the stock continuing to trade under symbol 'CYN' but with a new CUSIP number.
The primary purpose is to increase the per share market price to maintain Nasdaq Capital Market listing compliance. When effective, every 150 shares will automatically combine into 1 share, with stockholders maintaining their same percentage ownership. The company will round up fractional shares to the nearest whole share at the participant level. All equity awards and warrants will be proportionately adjusted.
Continental Stock Transfer and Trust is serving as the exchange agent. Stockholders with electronic book-entry shares need not take action to receive post-split shares.
Cyngn (Nasdaq: CYN) ha annunciato uno split azionario inverso 1-per-150 delle sue azioni ordinarie, a seguito dell'approvazione del Consiglio e dell'autorizzazione degli azionisti del 30 gennaio 2025. Lo split entrerà in vigore all'apertura del mercato il 18 febbraio 2025, con le azioni che continueranno a essere scambiate con il simbolo 'CYN', ma con un nuovo numero CUSIP.
Lo scopo principale è aumentare il prezzo di mercato per azione per mantenere la conformità con la quotazione nel Nasdaq Capital Market. Quando entrerà in vigore, ogni 150 azioni si uniranno automaticamente in 1 azione, con gli azionisti che manterranno la stessa percentuale di proprietà. L'azienda arrotonderà le azioni frazionarie al numero intero più vicino a livello di partecipante. Tutti i premi azionari e i warrant saranno proporzionalmente adeguati.
Continental Stock Transfer and Trust funge da agente di cambio. Gli azionisti con azioni in forma elettronica non devono intraprendere alcuna azione per ricevere le azioni post-split.
Cyngn (Nasdaq: CYN) ha anunciado un split de acciones inverso 1-por-150 de sus acciones ordinarias, tras la aprobación de la Junta y la autorización de los accionistas del 30 de enero de 2025. El split será efectivo al abrir el mercado el 18 de febrero de 2025, con las acciones continuando su negociación bajo el símbolo 'CYN', pero con un nuevo número CUSIP.
El propósito principal es aumentar el precio de mercado por acción para mantener el cumplimiento de la lista del Nasdaq Capital Market. Cuando sea efectivo, cada 150 acciones se combinarán automáticamente en 1 acción, manteniendo los accionistas el mismo porcentaje de propiedad. La empresa redondeará las acciones fraccionarias al número entero más cercano a nivel de participante. Todos los premios de capital y warrants se ajustarán proporcionalmente.
Continental Stock Transfer and Trust actúa como agente de intercambio. Los accionistas con acciones en forma de libro electrónico no necesitan tomar ninguna medida para recibir las acciones posteriores al split.
Cyngn (Nasdaq: CYN)은 1대 150 주식 병합을 발표했습니다. 이는 2025년 1월 30일 이사회 승인과 주주 승인에 따른 것입니다. 이 병합은 2025년 2월 18일 시장 개장 시 효력이 발생하며, 주식은 'CYN' 기호로 계속 거래되지만 새로운 CUSIP 번호를 갖게 됩니다.
주요 목적은 Nasdaq 자본 시장 목록 준수를 유지하기 위해 주당 시장 가격을 증가시키는 것입니다. 효력이 발생하면, 150주가 자동으로 1주로 합쳐지며, 주주들은 동일한 소유 비율을 유지합니다. 회사는 참가자 수준에서 소수점 주식을 가장 가까운 정수 주식으로 반올림합니다. 모든 주식 보상 및 워런트는 비례적으로 조정됩니다.
Continental Stock Transfer and Trust는 교환 대행자로 활동하고 있습니다. 전자 장부에 주식을 보유한 주주들은 병합 후 주식을 받기 위해 별도의 조치를 취할 필요가 없습니다.
Cyngn (Nasdaq: CYN) a annoncé un rachat d'actions inversé de 1 pour 150 de ses actions ordinaires, suite à l'approbation du Conseil et à l'autorisation des actionnaires du 30 janvier 2025. Le rachat sera effectif à l'ouverture du marché le 18 février 2025, les actions continuant d'être échangées sous le symbole 'CYN', mais avec un nouveau numéro CUSIP.
Le principal objectif est d'augmenter le prix de marché par action afin de maintenir la conformité avec les exigences de cotation du Nasdaq Capital Market. Lorsque cela sera effectif, chaque 150 actions sera automatiquement combinée en 1 action, les actionnaires conservant le même pourcentage de propriété. La société arrondira les actions fractionnaires au nombre entier le plus proche au niveau du participant. Toutes les récompenses en actions et les bons seront ajustés proportionnellement.
Continental Stock Transfer and Trust agit en tant qu'agent d'échange. Les actionnaires ayant des actions en entrée de livre électronique n'ont pas besoin de prendre de mesures pour recevoir les actions après le rachat.
Cyngn (Nasdaq: CYN) hat einen 1-zu-150 Reverse Stock Split seiner Stammaktien angekündigt, nachdem der Vorstand und die Aktionäre am 30. Januar 2025 zugestimmt haben. Der Split wird am 18. Februar 2025 mit Markteröffnung wirksam, wobei die Aktien weiterhin unter dem Symbol 'CYN' gehandelt werden, jedoch mit einer neuen CUSIP-Nummer.
Das Hauptziel ist es, den Marktpreis pro Aktie zu erhöhen, um die Einhaltung der Nasdaq Capital Market Listungsanforderungen aufrechtzuerhalten. Sobald es wirksam wird, werden automatisch 150 Aktien in 1 Aktie zusammengelegt, wobei die Aktionäre ihren gleichen prozentualen Anteil an der Eigentümerschaft beibehalten. Das Unternehmen wird Bruchteile von Aktien auf die nächstgelegene ganze Aktie auf Teilnehmer-Ebene aufrunden. Alle Eigenkapitalvergütungen und Warrants werden entsprechend angepasst.
Continental Stock Transfer and Trust fungiert als Austauschagent. Aktionäre mit elektronischen Buchungseinträgen müssen keine Maßnahmen ergreifen, um die Aktien nach dem Split zu erhalten.
- None.
- Company forced to implement reverse split to maintain Nasdaq listing compliance
- Stock price has fallen below Nasdaq minimum bid requirements
- Significant 1:150 ratio indicates severe share price deterioration
Insights
This 1-for-150 reverse stock split represents a critical yet concerning development for Cyngn. The extreme ratio selected (1:150) signals significant underlying challenges, as such aggressive consolidations are typically reserved for companies facing severe price deterioration. For context, most reverse splits usually range from 1:10 to 1:30.
The immediate objective is maintaining Nasdaq listing compliance, which requires a minimum bid price of
Several critical implications warrant investor attention:
- The high consolidation ratio could significantly reduce market liquidity, potentially leading to increased volatility and wider bid-ask spreads
- While mathematically neutral, reverse splits often trigger negative market psychology, as they're frequently associated with distressed companies
- The adjustment of all equity awards and warrants maintains relative value but could complicate future capital raising efforts
The automatic rounding up of fractional shares at the participant level, while seemingly minor, could result in a slight increase in the number of outstanding shares, though the impact should be minimal given the high ratio. The timing of the implementation, scheduled for February 18, provides minimal transition period, suggesting urgency in meeting compliance requirements.
Cyngn expects the Company's Common Stock will begin trading on a post-split basis at the market open on February 18, 2025, and continue to be traded under the symbol "CYN" with a new CUSIP number 23257B 305. The primary objective of the Reverse Stock Split is to increase the per share market price of the Common Stock to regain compliance with the minimum bid price requirement for continued listing on the Nasdaq Capital Market and maintain the listing of its common stock on the Nasdaq Capital Market.
When the Reverse Stock Split is effective, every 150 shares of Cyngn Common Stock issued and outstanding will be combined automatically into 1 share of Common Stock. The Reverse Stock Split will apply equally to all outstanding shares of Common Stock and each stockholder will hold the same percentage Common Stock outstanding immediately following the Reverse Stock Split, except for adjustments that may result from the treatment of fractional shares. No fractional shares shall be issued in connection with the Reverse Stock Split. In lieu thereof, if, upon aggregating all of the shares of Common Stock held by a record holder of Common Stock immediately following the Reverse Stock Split such holder would otherwise be entitled to a fractional share of Common Stock, as a result of the Reverse Stock Split, the Company shall issue to such holder an additional fraction of a share of Common Stock as is necessary to round the number of shares of Common Stock, held by such holder up to the nearest whole share. The Company does not intend to round up fractional shares at the beneficial level and will instead round any such fractional shares up at the participant level. All equity awards and warrants outstanding immediately prior to the Reverse Stock Split will be proportionately adjusted to reflect the Reverse Stock Split.
Continental Stock Transfer and Trust is acting as the exchange agent and transfer agent for the Reverse Stock Split. Stockholders holding their shares electronically in book-entry form are not required to take any action to receive post-split shares. The Company does not have any outstanding certificated shares.
Additional information about the Reverse Stock Split can be found in Cyngn's definitive proxy statement (Form DEF 14A) filed with the
About Cyngn
Cyngn develops and deploys scalable, differentiated autonomous vehicle technology for industrial organizations. Cyngn's self-driving solutions allow existing workforces to increase productivity and efficiency. The Company addresses significant challenges facing industrial organizations today, such as labor shortages, costly safety incidents, and increased consumer demand from eCommerce.
Cyngn's DriveMod Kit can be installed on new industrial vehicles at end of line or via retrofit, empowering customers to seamlessly adopt self-driving technology into their operations without high upfront costs or the need to completely replace existing vehicle investments.
Cyngn's flagship product, its Enterprise Autonomy Suite, includes DriveMod (autonomous vehicle system), Cyngn Insight (customer-facing suite of AV fleet management, teleoperation, and analytics tools), and Cyngn Evolve (internal toolkit that enables Cyngn to leverage data from the field for artificial intelligence, simulation, and modeling).
Where to Find Cyngn
- Website: https://cyngn.com
- Twitter: http://twitter.com/cyngn
- LinkedIn: https://www.linkedin.com/company/cyngn
- YouTube: https://www.youtube.com/@cyngnhq
Investor Contact:
Don Alvarez
investors@cyngn.com
Media Contact
Luke Renner
media@cyngn.com
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Any statement that is not historical in nature is a forward-looking statement and may be identified by the use of words and phrases such as "expects," "anticipates," "believes," "will," "will likely result," "will continue," "plans to," "potential," "promising," and similar expressions. These statements are based on management's current expectations and beliefs and are subject to a number of risks, uncertainties and assumptions that could cause actual results to differ materially from those described in the forward-looking statements, including the risk factors described from time to time in the Company's reports to the SEC, including, without limitation the risk factors discussed in the Company's annual report on Form 10-K filed with the SEC on March 7, 2024. Readers are cautioned that it is not possible to predict or identify all the risks, uncertainties and other factors that may affect future results No forward-looking statement can be guaranteed, and actual results may differ materially from those projected. Cyngn undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events, or otherwise.
View original content to download multimedia:https://www.prnewswire.com/news-releases/cyngn-announces-reverse-stock-split-302375831.html
SOURCE Cyngn
FAQ
What is the ratio of Cyngn's (CYN) reverse stock split announced in February 2025?
When will CYN's reverse stock split take effect?
Why is Cyngn (CYN) implementing a reverse stock split?
How will CYN handle fractional shares in the reverse split?
Do CYN shareholders need to take any action for the reverse split?
