Cemtrex Announces 1-For-35 Reverse Stock Split
Cemtrex announced a 1-for-35 reverse stock split of its common stock, effective November 26, 2024. The split aims to regain compliance with Nasdaq's minimum closing bid price requirement. Every 35 shares will combine into one share, with the stock continuing to trade under 'CETX'. No fractional shares will be issued, with holders receiving one whole share instead. The split will reduce outstanding shares to one-thirty-fifth and adjust all outstanding options and warrants proportionally. ClearTrust, will serve as the transfer agent, with certificated shareholders receiving exchange instructions while book-entry holders require no action.
Cemtrex ha annunciato un raggruppamento azionario 1 per 35 delle sue azioni ordinarie, che entrerà in vigore il 26 novembre 2024. L'operazione ha lo scopo di riportare la società in conformità con il requisito di prezzo minimo di chiusura delle offerte di Nasdaq. Ogni 35 azioni sarà unita in un'unica azione, con le azioni che continueranno a essere scambiate con il simbolo 'CETX'. Non verranno emesse frazioni di azioni, pertanto i possessori riceveranno una sola azione intera. Il raggruppamento ridurrà le azioni in circolazione a un trentacinquesimo e adeguerà proporzionalmente tutte le opzioni e i warrant in circolazione. ClearTrust fungerà da agente di trasferimento, con gli azionisti con certificato che riceveranno istruzioni per lo scambio, mentre i possessori di azioni in book-entry non dovranno intraprendere alcuna azione.
Cemtrex anunció un split inverso de acciones 1 por 35 de sus acciones ordinarias, que entrará en vigencia el 26 de noviembre de 2024. El split tiene como objetivo restablecer el cumplimiento del requisito de precio mínimo de oferta de cierre de Nasdaq. Cada 35 acciones se combinarán en una sola acción, y la acción continuará negociándose bajo el símbolo 'CETX'. No se emitirán acciones fraccionarias, y los titulares recibirán una acción entera en su lugar. El split reducirá las acciones en circulación a un trentacinco y ajustará proporcionalmente todas las opciones y warrants en circulación. ClearTrust será el agente de transferencia, y los accionistas con certificado recibirán instrucciones de intercambio, mientras que los tenedores de acciones en forma de libro no necesitarán realizar ninguna acción.
Cemtrex는 그 일반주식의 35주 중 1주 비율의 주식 분할을 2024년 11월 26일부터 시행한다고 발표했습니다. 이번 분할의 목적은 Nasdaq의 최소 종가 기준 가격 요구 사항을 준수하는 것입니다. 35주가 한 주로 결합되며, 주식은 계속해서 'CETX'로 거래됩니다. 분할로 인해 부분적인 주식은 발행되지 않으며, 보유자는 대신 하나의 전체 주식을 받게 됩니다. 이번 분할로 주식 수는 35분의 1로 줄어들고, 모든 미결 옵션 및 워런트도 비례적으로 조정됩니다. ClearTrust가 이전 대행사로 활동하며, 인증된 주주는 교환 지침을 받고, 장부에 기록된 주주는 별도의 조치를 취할 필요가 없습니다.
Cemtrex a annoncé un regroupement d'actions 1 pour 35 de ses actions ordinaires, qui entrera en vigueur le 26 novembre 2024. Ce regroupement vise à rétablir la conformité avec l'exigence de prix d'offre de clôture minimum du Nasdaq. Chaque 35 actions sera combinée en une seule action, les actions continuant à être échangées sous le symbole 'CETX'. Aucune action fractionnée ne sera émise, les détenteurs recevant une action entière à la place. Ce regroupement réduira le nombre d'actions en circulation à un trente-cinquième et ajustera proportionnellement toutes les options et les bons de souscription en circulation. ClearTrust agira en tant qu'agent de transfert, les actionnaires titulaires de certificats recevant des instructions d'échange, tandis que les détenteurs d'actions au porteur n'auront aucune mesure à prendre.
Cemtrex kündigte einen 1-zu-35 Reverse-Stock-Split seiner Stammaktien an, der am 26. November 2024 in Kraft treten wird. Der Split soll die Einhaltung der Mindestkursanforderung der Nasdaq für Schlusskurse wiederherstellen. Jede 35 Aktien wird zu einer Aktie zusammengelegt, wobei die Aktie weiterhin unter 'CETX' gehandelt wird. Es werden keine Bruchstücke von Aktien ausgegeben; die Inhaber erhalten stattdessen eine ganze Aktie. Der Split reduziert die ausstehenden Aktien auf ein Dreiunddreißigstel und passt alle ausstehenden Optionen und Warrants proportional an. ClearTrust wird als Transferagent fungieren, wobei die zertifizierten Aktionäre Anweisungen zum Austausch erhalten, während die Inhaber von Buchanteilen keine Maßnahmen ergreifen müssen.
- Potential maintenance of Nasdaq listing through compliance with minimum bid requirements
- Implementation of significant 1-for-35 reverse stock split indicating serious share price deterioration
- Risk of continued non-compliance with Nasdaq listing requirements despite the reverse split
Insights
This reverse stock split represents a significant defensive move to maintain Nasdaq listing compliance. With a
The mechanics include adjusting all outstanding options and warrants by the same ratio, maintaining their economic value. This corporate action typically signals financial distress, as companies rarely pursue such aggressive ratios unless facing delisting pressure. The extremely small post-split float could lead to increased volatility and potentially challenging trading dynamics for investors.
Brooklyn, NY, Nov. 21, 2024 (GLOBE NEWSWIRE) -- - Cemtrex Inc. (NASDAQ: CETX, CETXP), an advanced security technology and industrial services company, today announced that its Board of Directors authorized the stockholders approved 1-for-35 reverse stock split (the “Reverse Stock Split”) of its common stock, par value
The Reverse Stock Split will become effective at 12:01 a.m. Eastern Time on November 26, 2024 (the “Effective Time”). The Common Stock will continue to trade on The Nasdaq Capital Market under the symbol “CETX” and will begin trading on a post-split basis when the market opens on November 26, 2024. The new CUSIP number for the Common Stock following the Reverse Stock Split will be 15130G881.
The Reverse Stock Split is intended to enable the Company to regain compliance with the minimum closing bid price requirement for continued listing on Nasdaq.
At the Effective Time of the Reverse Stock Split, every 35 shares of the Company’s issued and outstanding Common Stock will be combined into one share of Common Stock issued and outstanding, with no change to the par value of
The principal effect of the Reverse Split will be that (i) the number of shares of common stock issued and outstanding will be reduced to one-thirty-fifth that amount, and (ii) all outstanding options and warrants (other than the Adjustable Warrants) entitling the holders thereof to purchase shares of common stock will enable such holders to purchase, upon exercise of their options or warrants, one-twentieth of the number of shares of common stock which such holders would have been able to purchase upon exercise of their options or warrants, immediately preceding the Reverse Split at an exercise price equal to 35 times the exercise price specified before the Reverse Split, resulting in essentially the same aggregate price being required to be paid therefor upon exercise thereof immediately preceding the Reverse Split. Other awards under our 2020 Equity Compensation Plan would be subject to proportionate adjustments.
ClearTrust, LLC is acting as transfer and exchange agent for the Reverse Stock Split. Stockholders with shares held in certificated form will receive from ClearTrust, LLC instructions regarding the exchange of their certificates. Stockholders that hold shares in book-entry form or hold their shares in brokerage accounts are not required to take any action and will see the impact of the Reverse Stock Split reflected in their accounts, subject to brokers’ particular processes. Beneficial holders of Common Stock are encouraged to contact their bank, broker, custodian or other nominee with questions regarding procedures for processing the Reverse Stock Split.
About Cemtrex
Cemtrex Inc. (CETX) is a company that owns two operating subsidiaries: Vicon Industries Inc and Advanced Industrial Services Inc.
Vicon Industries, a subsidiary of Cemtrex Inc., is a global leader in advanced security and surveillance technology to safeguard businesses, schools, municipalities, hospitals and cities. Since 1967, Vicon delivers mission-critical security surveillance systems, specializing in engineering complete security solutions that simplify deployment, operation and ongoing maintenance. Vicon provides security solutions for some of the largest municipalities and businesses in the U.S. and around the world, offering a wide range of cutting-edge and compliant security technologies, from AI-driven video analytics to fully integrated access control solutions. For more information visit www.vicon-security.com.
AIS – Advanced Industrial Services, a subsidiary of Cemtrex, Inc., is a premier provider of industrial contracting services including millwrighting, rigging, piping, electrical, welding. AIS Installs high precision equipment in a wide variety of industrial markets including automotive, printing & graphics, industrial automation, packaging, and chemicals. AIS owns and operates a modern fleet of custom designed specialty equipment to assure safe and quick installation of your production equipment. Our talented staff participates in recurring instructional training, provided to ensure that the most current industry methods are being utilized to provide an efficient and safe working environment. For more information visit www.ais-york.com.
For more information visit www.cemtrex.com.
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including statements relating to the closing of the offering, gross proceeds from the offering, our new product offerings, expected use of proceeds, or any proposed fundraising activities. These forward-looking statements are based on management’s current expectations and are subject to certain risks and uncertainties that could cause actual results to differ materially from those set forth in or implied by such forward looking statements. Statements made herein are as of the date of this press release and should not be relied upon as of any subsequent date. These risks and uncertainties are discussed under the heading “Risk Factors” contained in our Form 10-K filed with the Securities and Exchange Commission. All information in this press release is as of the date of the release and we undertake no duty to update this information unless required by law.
Investor Relations
Chris Tyson
Executive Vice President – MZ North America
Direct: 949-491-8235
CETX@mzgroup.us
www.mzgroup.us
FAQ
When will Cemtrex (CETX) reverse stock split take effect?
What is the conversion ratio for Cemtrex's (CETX) reverse stock split?
Why is Cemtrex (CETX) implementing a reverse stock split?
Will Cemtrex (CETX) stock symbol change after the reverse split?
