Cyngn Inc. filed SEC Form 8-K: Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing
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Item 3.01 Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing.
On February 6, 2025, Cyngn Inc., a Delaware corporation (the “Company”) received a letter (the “Minimum Bid Price Deficiency Letter”) from the Listing Qualifications Department (the “Staff”) of The Nasdaq Stock Market LLC (“Nasdaq”), notifying the Company that it was not in compliance with Nasdaq Listing Rule 5550(a)(2) which requires listed companies to maintain a minimum bid price of $1.00 per share (the “Minimum Bid Price Requirement”). Normally, a company would be afforded a 180-calendar day period to demonstrate compliance with the Minimum Bid Price Requirement. However, pursuant to Listing Rule 5810(c)(3)(A)(iv) the Company is not eligible for any compliance period specified in Rule 5810(c)(3)(A) because the Company has effected a reverse stock split over the prior one-year period or has effected one or more reverse stock splits over the prior two-year period with a cumulative ratio of 250 shares or more to one. Accordingly, the Company’s securities are subject to delisting from Nasdaq unless the Company requests an appeal of this determination by February 13, 2025.
The Company plans to timely request a hearing before the Nasdaq Hearings Panel (the “Panel”), which request will stay the suspension of the Company’s securities and filing of a Form 25-NSE pending the Panel’s decision. The Company’s common stock will continue to trade on Nasdaq under the symbol “CYN” pending the hearing and the Panel’s decision.
The Company intends to provide the Panel with a plan for compliance with the Minimum Bid Price Requirement in writing no later than February 13, 2025.
The Company obtained shareholder approval of a reverse stock split in the range of 1-for-5 to 1-for-150 on January 30, 2025 and received approval on February 6,2025, of a majority in interest of investors in those certain Securities Purchase Agreements dated December 20, 2024 and December 30, 2024. On January 30, 2025, the Company’s Board of Directors approved the effectuation of a reverse stock split of the outstanding common stock at a 1-for-150 ratio (the “Reverse Split”). The Company intends to expeditiously implement the Reverse Split as a means to regain compliance with the Minimum Bid Price Requirement.
There can be no assurance that the Panel will accept the Company’s plan for compliance or grant the Company’s request for continued listing or that the Company will be able meet the continued listing requirements during any compliance period that may be granted by the Panel.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: February 6, 2025
| CYNGN INC. | ||
| By: | /s/ Donald Alvarez | |
| Donald Alvarez | ||
| Chief Financial Officer | ||