Cyngn (CYN) stock continued to rally on Friday after the company’s shares saw massive gains yesterday. The catalyst for this positive movement was news of a collaboration with Nvidia (NVDA). This had the company showcase how it uses Nvidia’s Isaac platform for autonomous driving of industrial vehicles.
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During yesterday’s rally, Cyngn also announced a registered direct offering for its stock. The company priced shares and pre-funded warrants in the offering at $5.01 each. The offering includes 2,994,012 shares of CYN stock or warrants.
Cyngn expects gross proceeds from the offering to be $15 million. It will use net proceeds from this offering for general corporate purposes and working capital. Aegis Capital Corp. is the sole placement agent for the offering, with Sichenzia Ross Ference Carmel LLP providing counsel to Cyngn.
CYN Stock Movement Today
Cyngn stock was up 80.15% in pre-market trading on Friday, following a massive 171.46% rally yesterday. That’s welcome news for the shares, which are still down 89.32% year-to-date and 98.76% over the past 12 months.
Today’s movement comes with heavy trading, as more than 17 million shares of CYN stock changed hands. For comparison, the company’s daily average trading volume over the past three months was about 28,000 shares. It also saw heavy trading yesterday, as some 140 million shares were exchanged.
Is Cyngn Stock a Buy, Sell, or Hold?
Turning to Wall Street, there’s little coverage of Cyngn. Even so, TipRanks’ AI analyst Spark has the shares covered. It rates CYN stock a Neutral (40) with a $5 price target, suggesting a 63.24% downside. Spark cites “substantial financial difficulties, with negative profitability, cash flow issues, and a challenging valuation environment” as reasons for this stance.
