Why Cyngn Stock Is Down Nearly 50%
Portfolio Pulse from Henry Khederian
Cyngn Inc's stock (NASDAQ:CYN) plummeted by 48% to $0.21 after the company announced a public stock offering priced at approximately $5.0 million. The offering includes over 33 million shares of common stock and pre-funded warrants at $0.15 per share or $0.14999 per pre-funded warrant. The closing date is scheduled for December 12, subject to standard closing conditions. Cyngn plans to use the proceeds for general corporate purposes and working capital. The company specializes in autonomous vehicle technology for industrial use. CYN's 52-week trading range is between $0.17 and $1.38.
December 08, 2023 | 4:58 pm
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NEGATIVE IMPACT
Cyngn Inc's stock price has significantly dropped following the announcement of a public stock offering at a price substantially lower than the current trading price.
The substantial drop in Cyngn's stock price is likely due to the dilutive effect of the public offering, which is priced significantly below the recent trading price, indicating a potential devaluation of existing shares.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100