Cemtrex, Inc. Announces $5.4 Million Registered Direct Offering Priced At-The-Market

Rhea-AI Summary

Cemtrex Inc. (Nasdaq: CETX) has entered into definitive agreements with institutional investors to sell shares of its common stock at $2.24 per share, aiming to raise $5.4 million in gross proceeds before fees. Closing is anticipated around June 12, 2020. The company plans to utilize the funds for general corporate purposes, including the acceleration of technology development and strategic acquisitions in IoT, AR & VR, and AI & CV sectors. A.G.P./Alliance Global Partners serves as the placement agent for this offering.

Positive

• Plans to use proceeds for technology development in IoT, AR & VR, and AI & CV.
• Strategic positioning for potential acquisition opportunities.

Negative

• Potential dilution of shares due to new stock issuance.

Brooklyn, NY, June 10, 2020 (GLOBE NEWSWIRE) -- Brooklyn, NY, June 10, 2020 (GLOBE NEWSWIRE) – Cemtrex Inc. (Nasdaq: CETX, CETXP, CETXW), a leading multi-industry technology company that is driving innovation in a wide range of commercial sectors such as Internet of Things (IoT), Augmented and Virtual Reality (AR & VR), and Artificial Intelligence and Computer Vision (AI & CV), today announced it has entered into definitive agreements with institutional investors for the purchase and sale of shares of its common stock at a purchase price of $2.24 per share in a registered direct offering priced at-the-market under Nasdaq rules for gross proceeds of $5.4 million before deducting placement agent fees and expenses. The closing of the offering is expected to occur on or about June 12, 2020, subject to the satisfaction of customary closing conditions.

Cemtrex intends to use the proceeds for general corporate purposes, including accelerating its technology development, sales, and marketing activities in key growth segments including Internet of Things (IoT), Augmented and Virtual Reality (AR & VR), and Artificial Intelligence and Computer Vision (AI & CV) in security applications. Additionally, the proceeds will strategically position the Company for attractive acquisition opportunities that may be available due to the current economic environment.

A.G.P./Alliance Global Partners is acting as sole placement agent for the offering.
  
This offering is being made pursuant to an effective shelf registration statement on Form S-3 (File No. 333- 218501) previously filed with the U.S. Securities and Exchange Commission (the “SEC”). A prospectus supplement describing the terms of the proposed offering will be filed with the SEC and will be available on the SEC’s website located at http://www.sec.gov. Electronic copies of the prospectus supplement may be obtained, when available, from A.G.P./Alliance Global Partners, 590 Madison Avenue, 28th Floor, New York, NY 10022, or by telephone at (212) 624-2060, or by email at prospectus@allianceg.com. Interested parties should read in their entirety the prospectus supplement and the accompanying prospectus and the other documents that the Company has filed with the SEC that are incorporated by reference in such prospectus supplement and the accompanying prospectus, which provide more information about the Company and such offering.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Cemtrex

Cemtrex, Inc. (CETX) is a leading multi-industry technology company that is driving innovation in markets such as Internet of Things (IoT), Augmented and Virtual Reality (AR & VR), and Artificial Intelligence and Computer Vision (AI & CV) in a wide range of sectors, including consumer products, industrial manufacturing, digital applications, and intelligent security & surveillance systems.
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.

Press Contact for CETX:

For further information, please contact:

Investor Relations
Cemtrex, Inc.
Phone: 631-756-9116
investors@cemtrex.com

General Inquiries
sales@cemtrex.com

FAQ

What is the purpose of Cemtrex's recent stock offering?

Cemtrex intends to use the proceeds primarily for technology development and strategic acquisitions.

How much capital is Cemtrex aiming to raise in its stock offering?

Cemtrex is looking to raise $5.4 million in gross proceeds from the offering.

When is the expected closing date for Cemtrex's stock offering?

The closing of the offering is expected to occur on or about June 12, 2020.

Who is the placement agent for Cemtrex's stock offering?

A.G.P./Alliance Global Partners is acting as the sole placement agent for the offering.

What will happen to existing shareholders due to the new share offering by Cemtrex?

Existing shareholders may experience dilution of their shares due to the issuance of new stock.