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PARK, Calif., May 31, 2024
/PRNewswire/ -- Cyngn Inc. (the "Company" or "Cyngn") (Nasdaq: CYN)
issued a letter from the CEO —
Dear Cyngn Shareholders:
As most of you are aware, our annual shareholder meeting is
scheduled for June 25, 2024 and proxy
materials containing several critical matters requiring shareholder
approval have been distributed. The matter I wanted to talk to you
about today is granting discretionary authority to our Board of
Directors to affect a reverse stock split.
We consider the reverse stock split a last measure to regain
compliance with Nasdaq's $1 minimum
bid price requirement before the late August deadline. We have
postponed this as long as possible but now we need to act, and so
we're asking for you to allow us to do that.
While achieving the minimum bid price requirement organically is
preferred, despite our best efforts, achievement of many commercial
milestones and significant progress in 2024, to date, we have not
been able to achieve this. Therefore, my recommendation to the
Board of Directors and to you, the shareholders of Cyngn, is that
we enable the option of the reverse stock split as a potential
remedy for regaining the minimum bid compliance before the
deadline.
Voting to authorize this option is of vital importance. My
responsibility as CEO is to do what is in the best interest of the
company's stakeholders, including its shareholders, employees and
customers. To survive and prosper, the company needs access to
capital to fund operations until it is cash flow positive. Few
sources of capital are willing to provide financing to the company
if it is no longer on a major national exchange. Down-listing to an
over-the-counter exchange where market making and trading volumes
are significantly lower would put the company and its stakeholders
at significant risk.
Also included for vote in the proxy is a proposal to amend our
articles of incorporation to increase the number of shares of
authorized common stock from 200,000,000 to 400,000,000. This will
only be effected in the event that we regain compliance with the
minimum bid price organically as we would need these additional
authorized shares to further fund the company until it is cash flow
positive.This increase will not be necessary if the company
executes a reverse split, which will result in a reduction of the
outstanding shares. This measure is not intended to be used in
addition to the reverse split, but rather in the event one is not
used.
Thanks for your support and understanding.
Sincerely,
Lior Tal
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
for 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).
Find Cyngn on:
- Website: cyngn.com
- Twitter: twitter.com/cyngn
- LinkedIn: https://www.linkedin.com/company/cyngn
- YouTube: https://www.youtube.com/@cyngnhq
Investor Contact:
Don Alvarez, CFO
investors@cyngn.com
Media Contact:
Luke Renner, Head of Marketing
media@cyngn.com
FORWARD-LOOKING STATEMENTS:
This press release contains "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act and
other securities laws. Words such as "expects," "anticipates,"
"intends," "plans," "believes," "seeks," "estimates" and similar
expressions or variations of such words are intended to identify
forward-looking statements. Forward-looking statements are not
historical facts, and are based upon management's current
expectations, beliefs and projections, many of which, by their
nature, are inherently uncertain. Such expectations, beliefs and
projections are expressed in good faith. However, there can be no
assurance that management's expectations, beliefs and projections
will be achieved, and actual results may differ materially from
what is expressed in or indicated by the forward-looking
statements. Forward-looking statements are subject to risks and
uncertainties that could cause actual performance or results to
differ materially from those expressed 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. References and links to websites have
been provided as a convenience, and the information contained on
such websites is not incorporated by reference into this press
release. Cyngn is not responsible for the contents of third-party
websites.
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SOURCE Cyngn