Cemtrex, Inc. Announces Pricing of $1.25 Million Underwritten Public Offering
- Proceeds will be used to pay down indebtedness, improving the company's balance sheet
- Additional working capital will provide operational flexibility
- Successful shelf registration and underwritten offering indicates market access
- Small offering size of only $1.25 million may indicate limited investor interest
- Share dilution for existing stockholders
- Low share price of $1.00 could suggest challenging market conditions
Insights
Cemtrex's $1.25M offering at $1 per share likely dilutes shareholders while providing minimal working capital and debt reduction.
This $1.25 million public offering by Cemtrex represents a relatively small capital raise for a NASDAQ-listed company. The offering of 1,250,000 shares at $1.00 per share will likely result in significant dilution for existing shareholders, considering the company's market capitalization. What's concerning is the small size of this raise relative to the costs associated with conducting a public offering, including underwriting fees and other expenses that will reduce the net proceeds available to the company.
The stated use of proceeds for "general corporate purposes, paying down indebtedness, and working capital" lacks specificity and suggests the company may be raising funds primarily to address immediate cash needs rather than for growth initiatives. The mention of debt reduction indicates Cemtrex is allocating some portion of this limited capital to managing its balance sheet rather than purely funding operations or expansion.
The 45-day overallotment option granted to Aegis Capital Corp. for up to 15% additional shares could further dilute shareholders if exercised. Given the small size of the offering, the net proceeds after expenses may be substantially less than the $1.25 million gross amount, potentially limiting the company's ability to make meaningful progress on its stated objectives. This type of small offering often signals near-term liquidity concerns that investors should carefully evaluate in context of the company's overall financial health.
Hauppauge, NY, May 28, 2025 (GLOBE NEWSWIRE) -- Cemtrex, Inc. (NASDAQ: CETX) (the “Company”), an advanced security technology and industrial services company, today announced the pricing of a firm commitment underwritten public offering with gross proceeds to the Company expected to be approximately
The offering consists of 1,250,000 shares of common stock (“Common Stock”). The public offering price per share of Common Stock is
In addition, the Company has granted Aegis Capital Corp. (“Aegis”) a 45-day option to purchase additional shares of Common Stock of up to
Aggregate gross proceeds to the Company are expected to be approximately
Aegis Capital Corp. is acting as the sole book-running manager for the offering. The Doney Law Firm is acting as counsel to the Company. Kaufman & Canoles, P.C. is acting as counsel to Aegis Capital Corp.
The offering is being 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.
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 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
What is the size and price of Cemtrex's (CETX) public offering in May 2025?
How will Cemtrex (CETX) use the proceeds from its May 2025 offering?
Who is the underwriter for Cemtrex's (CETX) May 2025 public offering?
When is Cemtrex's (CETX) public offering expected to close?
What over-allotment option was granted in Cemtrex's (CETX) offering?
