CYN - Cyngn stock slides on pricing $20M securities offering

Cyngn (NASDAQ:CYN) shares are down 12% after the company announced the pricing of a private securities offering. The autonomous vehicle technology company entered into a securities purchase agreement with certain institutional and accredited investors to issue 6,451,613 units and pre-funded units at a purchase price of $3.10/unit, priced at-the-market under Nasdaq rules. Each unit and pre-funded unit consist of one share of common stock or common stock equivalent, and one non-tradable warrant exercisable for one share of common stock for $2.98 (for a total of 6,451,613 shares underlying the warrant). The warrant will have a five year term from the date of issuance. No actual units will be issued in the offering. Gross proceeds are estimated to be $20M. Offering is expected to close around April 29, 2022. The company will have ~33.56M shares of common stock issued and outstanding at completion of the offering.

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Cyngn stock slides on pricing $20M securities offering