Cycurion, Inc. (NASDAQ: CYCU) announced on December 26 2025 that it is correcting its previously disclosed dividend distribution ratio from $0.0180 to $0.0080 per share, a 55.6% reduction in the per‑share payout.
The adjustment follows a private placement that closed on December 5 2025, in which the company sold 1,657,460 shares and issued 3,314,920 warrants that could be exercised for up to 6,972,380 additional shares at an effective price of $3.62 per share, raising approximately $6 million in gross proceeds. The warrants increase the number of shares eligible for the dividend, necessitating the ratio change.
The total dividend remains $500,000 and will be distributed in CYCU common shares. Using a valuation price of $6.00 per share—the closing price on August 29 2025—the distribution equates to roughly 83,333 shares. The company’s stock has fallen more than 99% year‑to‑date, and Cycurion has no prior dividend history, indicating that this is a special dividend rather than a recurring payout.
The correction signals that Cycurion is seeking additional capital to support working‑capital needs and general corporate purposes, while the share‑based dividend reflects the company’s limited cash position. The dilution from the private placement and the share‑based dividend structure may dampen the attractiveness of CYCU to income‑focused investors and highlight the company’s ongoing financial challenges.
Kevin Kelly, Chairman and CEO, noted that the proceeds from the private placement will be used for working capital and general corporate purposes, underscoring the company’s need to strengthen its balance sheet.
The announcement comes amid a steep decline in CYCU’s share price—over 99% year‑to‑date—and a moderate negative market reaction to the private placement, reflecting investor concerns about dilution and the company’s capital‑raising strategy.
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