Cemtrex, Inc. Announces Closing of $1.25 Million Underwritten Public Offering

Rhea-AI Summary

Cemtrex (NASDAQ: CETX), an advanced security technology and industrial services company, has successfully closed its previously announced underwritten public offering, raising $1.25 million in gross proceeds. The offering consisted of 1,250,000 shares of common stock priced at $1.00 per share.

Aegis Capital Corp. served as the sole book-running manager and has been granted a 45-day option to purchase up to an additional 15% of shares to cover potential over-allotments. The offering was conducted through an effective shelf registration statement on Form S-3.

Positive

• Company secured $1.25 million in additional funding through public offering
• Successful completion of underwritten offering demonstrates market access

Negative

• Potential dilution for existing shareholders with 1.25 million new shares issued
• Low offering price at $1.00 per share
• Additional dilution possible if over-allotment option is exercised

Insights

Financial Analyst

Cemtrex raised $1.25M through stock offering at $1 per share, diluting existing shareholders in exchange for working capital.

Cemtrex has completed a small but significant capital raise of $1.25 million through an underwritten public offering of 1,250,000 common shares priced at $1.00 per share. This represents a modest fundraising effort for the security technology and industrial services company. The company has also granted the underwriter, Aegis Capital Corp., a 45-day option to purchase up to an additional 15% of shares to cover potential over-allotments.

The capital raise, while providing necessary funds for operations, comes with a dilutive effect for existing shareholders. At the stated offering price of $1.00 per share, this offering increases the company's outstanding share count, potentially putting downward pressure on the stock price in the near term. The relatively small size of the offering ($1.25 million) suggests Cemtrex may be addressing immediate capital needs rather than funding major expansion.

This offering was conducted through an effective shelf registration, indicating the company had planned for potential capital raises. While the press release doesn't specify the use of proceeds, companies typically deploy such capital toward working capital, debt reduction, or funding specific growth initiatives. The timing and pricing of the offering provide insight into current market perception of Cemtrex's valuation and its access to capital markets.

Hauppauge, NY, May 29, 2025 (GLOBE NEWSWIRE) -- Cemtrex, Inc. (NASDAQ: CETX) (the “Company”), an advanced security technology and industrial services company, today announced the closing of its previously announced firm commitment underwritten public offering. Gross proceeds to the Company were approximately $1.25 million, before deducting underwriting fees and other offering expenses payable by the Company. The offering closed on May 29, 2025.

The offering consisted of 1,250,000 shares of common stock (“Common Stock”). The public offering price per share of Common Stock was $1.00.

In addition, the Company has granted Aegis Capital Corp. (“Aegis”) a 45-day option to purchase additional shares of Common Stock of up to 15.0% of the number of shares of Common Stock sold in the offering solely to cover over-allotments, if any.

Aegis Capital Corp. acted as the sole book-running manager for the offering. The Doney Law Firm acted as counsel to the Company. Kaufman & Canoles, P.C. acted as counsel to Aegis Capital Corp.

The offering was made pursuant to an effective shelf registration statement on Form S-3 (No. 333-283995) previously filed with the U.S. Securities and Exchange Commission (SEC) and declared effective by the SEC on February 3, 2025. A final prospectus supplement and accompanying prospectus describing the terms of the proposed offering will be filed with the SEC and will be available on the SEC’s website located at www.sec.gov. Electronic copies of the final prospectus supplement and the accompanying prospectus may be obtained, when available, by contacting Aegis Capital Corp., Attention: Syndicate Department, 1345 Avenue of the Americas, 27th floor, New York, NY 10105, by email at syndicate@aegiscap.com, or by telephone at +1 (212) 813-1010.

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

About Cemtrex, Inc.

Cemtrex, Inc. (Nasdaq: CETX) is a diversified technology company operating in the Security and Industrial sectors. Its Security segment, led by Vicon Industries, provides advanced video management software, high-performance security cameras, and integrated surveillance solutions for enterprise, government, and critical infrastructure. The Industrial segment, through Advanced Industrial Services (AIS), delivers expert rigging, millwrighting, process piping, and equipment installation services to manufacturers nationwide. With a focus on innovation, execution, and strategic growth, Cemtrex is committed to enhancing safety, efficiency, and value for its customers and shareholders.

For more information visit www.cemtrex.com.

Forward-Looking Statements

The foregoing material may contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, each as amended. Forward-looking statements include all statements that do not relate solely to historical or current facts, including without limitation statements regarding the Company’s product development and business prospects, and can be identified by the use of words such as “may,” “will,” “expect,” “project,” “estimate,” “anticipate,” “plan,” “believe,” “potential,” “should,” “continue” or the negative versions of those words or other comparable words. Forward-looking statements are not guarantees of future actions or performance. These forward-looking statements are based on information currently available to the Company and its current plans or expectations and are subject to a number of risks and uncertainties that could significantly affect current plans. Should one or more of these risks or uncertainties materialize, or the underlying assumptions prove incorrect, actual results may differ significantly from those anticipated, believed, estimated, expected, intended, or planned. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, the Company cannot guarantee future results, performance, or achievements. Except as required by applicable law, including the security laws of the United States, the Company does not intend to update any of the forward-looking statements to conform these statements to actual results.

Investor Relations
investors@cemtrex.com

FAQ

How much did Cemtrex (CETX) raise in their May 2025 public offering?

Cemtrex raised $1.25 million in gross proceeds through their May 2025 public offering.

What was the price per share for Cemtrex's (CETX) 2025 public offering?

The public offering price was $1.00 per share of Common Stock.

How many shares did Cemtrex (CETX) issue in their May 2025 offering?

Cemtrex issued 1,250,000 shares of common stock in the offering.

Who was the underwriter for Cemtrex's (CETX) May 2025 public offering?

Aegis Capital Corp. acted as the sole book-running manager for the offering.

What is the over-allotment option in Cemtrex's (CETX) 2025 offering?

Aegis Capital Corp. has a 45-day option to purchase up to 15% additional shares solely to cover over-allotments.