Cemtrex, Inc. Announces Closing of $10 Million Upsized Underwritten Public Offering

Hauppauge, NY, May 03, 2024 (GLOBE NEWSWIRE) --  – Cemtrex, Inc. (Nasdaq: CETX) (the “Company”), an advanced security technology and industrial services company, today announced the closing of a firm commitment underwritten public offering with gross proceeds to the Company of approximately $10 million, before deducting underwriting discounts and other estimated expenses payable by the Company. The offering was upsized from $9 million. The base offering consisted of 11,764,705 Common Units or Pre-Funded Units, each consisting of one share of common stock (“Common Share”) or one Pre-Funded Warrant, one Series A Warrant to purchase one Common Share at an exercise price of $0.85 per share or pursuant to an alternative cashless exercise option, which warrant will expire two-and-a-half years from the closing date of this offering (the “Series A Warrant”) and one Series B Warrant to purchase one Common Share at an exercise price of $0.85 per share, which warrant will expire on the five-year anniversary of the closing date of this offering (the “Series B Warrants” and together with the Series A Warrants, the “Warrants”). The purchase price of each Common Unit was $0.85, and the purchase price of each Pre-Funded Unit was $0.849 (which is equal to the public offering price per Common Unit minus $0.001). The Pre-Funded Warrants will be immediately exercisable and may be exercised at any time until all the Pre-Funded Warrants are exercised in full.

The Company intends to use the net proceeds from this offering to conduct operations, increase marketing efforts, invest in existing business initiatives and products, and for the partial repayment of indebtedness. The Company may also use a portion of the net proceeds of this offering to acquire or invest in complementary businesses, products, or technologies, or to obtain the right to use such complementary technologies.

In addition, the Company granted Aegis Capital Corp. a 45-day option to purchase additional Common Shares and/or Warrants, representing up to 15% of the number of securities sold in the offering, solely to cover over-allotments, if any.

The closing of the offering occurred on May 3, 2024, subject to the satisfaction of customary closing conditions.

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