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Cyngn | DEFA14A: Others

SEC announcement ·  Jun 1 05:33
Summary by Futu AI
Cyngn Inc., a developer of autonomous vehicle technology, has released a shareholder letter from CEO Lior Tal, addressing the upcoming annual shareholder meeting scheduled for June 25, 2024. The letter discusses critical matters requiring shareholder approval, notably the granting of discretionary authority to the Board of Directors to effect a reverse stock split. This action is considered a last resort to regain compliance with Nasdaq's $1 minimum bid price requirement before the late August deadline. Despite achieving commercial milestones and progress in 2024, the company has not yet met this requirement organically. The reverse stock split is presented as a potential remedy to maintain the company's listing on a major national exchange, which is crucial for accessing capital and avoiding the risks...Show More
Cyngn Inc., a developer of autonomous vehicle technology, has released a shareholder letter from CEO Lior Tal, addressing the upcoming annual shareholder meeting scheduled for June 25, 2024. The letter discusses critical matters requiring shareholder approval, notably the granting of discretionary authority to the Board of Directors to effect a reverse stock split. This action is considered a last resort to regain compliance with Nasdaq's $1 minimum bid price requirement before the late August deadline. Despite achieving commercial milestones and progress in 2024, the company has not yet met this requirement organically. The reverse stock split is presented as a potential remedy to maintain the company's listing on a major national exchange, which is crucial for accessing capital and avoiding the risks associated with down-listing to an over-the-counter exchange. Additionally, a proposal to amend the articles of incorporation to increase authorized common stock from 200 million to 400 million shares is included for vote, which will be enacted only if compliance is achieved organically. This increase is intended to fund the company until it becomes cash flow positive and is not meant to be used in conjunction with a reverse stock split.

This announcement is a separate document:

Doc 1

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