SCHEDULE 13G: Major Investor Michael Bigger and Affiliates Divest Entire Stake in Cyngn Inc.

Michael Bigger and affiliated entities, including Bigger Capital and District 2 Capital, have reported the sale of their entire beneficial ownership in Cyngn Inc., which previously amounted to 8.7% of the company's common stock.

Summary

• Michael Bigger, along with Bigger Capital Fund L P, Bigger Capital Fund GP, LLC, District 2 Capital Fund LP, District 2 Capital LP, District 2 GP LLC, and District 2 Holdings LLC, filed a Schedule 13G regarding their beneficial ownership in Cyngn Inc.
• As of December 23, 2024, Michael Bigger beneficially owned an aggregate of 1,863,354 shares of Cyngn Inc. Common Stock, representing approximately 8.7% of the outstanding shares.
• This ownership included 385,016 shares of Common Stock and 1,012,500 shares issuable upon exercise of Pre-Funded Warrants held by Bigger Capital, and 128,338 shares of Common Stock and 337,500 shares issuable upon exercise of Pre-Funded Warrants held by District 2 Capital Fund LP.
• The percentages were calculated based on 21,504,186 shares of Common Stock outstanding as of December 31, 2024.
• Crucially, subsequent to December 23, 2024, the Reporting Persons sold all of their Common Stock and Common Stock issuable upon exercise of the Pre-Funded Warrants.
• The filing certifies that the securities were not acquired or held for the purpose of changing or influencing the control of Cyngn Inc.

Sentiment

Score: 2

Explanation: The sentiment is negative due to the complete divestment of a significant stake by a major investor group, which typically signals a lack of confidence in the company's future performance.

Negatives

• The reporting persons, including significant investor Michael Bigger, have completely divested their entire stake in Cyngn Inc. after December 23, 2024, which could signal a lack of confidence in the company's future prospects from a notable investor.

Risks

• The complete divestment by a significant investor group could lead to negative market sentiment and potential downward pressure on Cyngn Inc.'s stock price.
• A large block sale could indicate that the selling parties perceive increased risk or limited upside potential for the company.

Future Outlook

This document does not contain any forward-looking statements or guidance from Cyngn Inc. management. It solely reports on the beneficial ownership and subsequent divestment by a group of investors.

Industry Context

This filing indicates a significant investor's exit from Cyngn Inc., which could be interpreted by the market as a signal regarding the company's specific performance or the broader industry's outlook. Such divestments by large shareholders can sometimes precede or coincide with shifts in investor sentiment within the autonomous vehicle or industrial technology sectors, though this filing does not provide specific industry analysis.

Stakeholder Impact

• Shareholders: The complete divestment by a significant investor could lead to a decrease in share price due to negative market sentiment and increased selling pressure. Existing shareholders might interpret this as a bearish signal.
• Potential Investors: New investors might be deterred by the news of a major shareholder exiting, leading to reduced demand for the stock.

Key Dates

Recommendation

Keywords

Cyngn Inc., Schedule 13G, beneficial ownership, stock sale, institutional investor, Michael Bigger, Bigger Capital, District 2 Capital, common stock, warrants, divestment