On November 12, 2024, Cyngn Inc., a Delaware-based company, announced the entry into a securities purchase agreement with certain investors. The agreement involves a private placement offering of notes totaling $4,375,000 and the issuance of 405,125 shares of common stock. The transaction is set to close on November 13, 2024, with expected gross proceeds of $3.5 million before fees and expenses. A portion of the proceeds will be held in escrow, with releases tied to the filing and effectiveness of a registration statement. Cyngn intends to use the net proceeds for working capital and general corporate purposes. Aegis Capital Corp. acted as the placement agent for the offering. The notes issued have an original issue discount of 20% and do not accrue interest unless an event of...Show More

On November 12, 2024, Cyngn Inc., a Delaware-based company, announced the entry into a securities purchase agreement with certain investors. The agreement involves a private placement offering of notes totaling $4,375,000 and the issuance of 405,125 shares of common stock. The transaction is set to close on November 13, 2024, with expected gross proceeds of $3.5 million before fees and expenses. A portion of the proceeds will be held in escrow, with releases tied to the filing and effectiveness of a registration statement. Cyngn intends to use the net proceeds for working capital and general corporate purposes. Aegis Capital Corp. acted as the placement agent for the offering. The notes issued have an original issue discount of 20% and do not accrue interest unless an event of default occurs. The company also entered into a registration rights agreement with the investors, committing to file a registration statement for the resale of the shares within 15 days of closing and to make it effective within a set timeframe. Additionally, company directors and executive officers have agreed to a 60-day lock-up period following the effective date of the registration statement. Cyngn has also implemented a cost reduction plan to decrease its monthly cash burn and is exploring additional capital raising options with Aegis Capital to meet its working capital needs.