FARMINGDALE, N.Y., Jan. 4, 2017 /PRNewswire/ -- (Nasdaq: CETX): With
the subscription deadline for participating in its subscription
rights offering just weeks away, Cemtrex, Inc. today reminded
rights holders and broker-dealers of important dates intended to
help them successfully participate in the process and fairly
subscribe to purchase units in the offering. The offering of
units, which can be purchased for $10.00 each, consist of one share of series 1
preferred stock, paying cumulative dividends at the rate of 10% of
the purchase price per year, and two series 1 warrants, each to
purchase one share of Cemtrex's common stock at $6.31 per share for a period of five years after
the closing of the offering. On January 3, 2017, the closing price of Cemtrex's
common stock, as reported by the Nasdaq Capital Market, was
$8.05 per share.
Cemtrex is conducting the rights offering primarily to raise
additional capital to supplement its operating cash flows to fund
new product development as well as its acquisition growth plan.
Cemtrex has chosen to give stockholders of record the
opportunity to purchase additional securities to maintain their
current percentage ownership in Cemtrex and provide capital at what
it believes are attractive price levels.
Cemtrex is offering up to 1,500,000 units, giving stockholders
the opportunity to subscribe to up to 1,500,000 shares of its
series 1 preferred stock and warrants to purchase up to
3,000,000 shares of common stock, each of which is expected to
trade in the over-the-counter market and be quoted on the OTCQB
marketplace.
The rights offering includes an over-subscription privilege,
which entitles each rights holder that exercises its basic
subscription privilege in full the right to purchase additional
units that remain unsubscribed at the expiration of the rights
offering, if any. Both the basic and over-subscription
privileges are subject to proration. The basic and
over-subscription privileges may be exercised during the
subscription period that ends at 5:00 p.m.,
Eastern Time, on Friday, January 20,
2017. Cemtrex may extend the offering up to an
additional 30 days, in which case the offering would continue on a
subscriptions first-in, first-served basis, with the potential for
pro rata allocation of shares among participants subscribing on the
day, if any, on which the offering becomes over-subscribed.
If the rights offering is not fully subscribed following expiration
of the rights offering, Source Capital Group, Inc., the
dealer-manager for the rights offering, has agreed to use its
commercially reasonable efforts to place any unsubscribed units at
the subscription price for an additional period of up to 45
days.
A final prospectus for the rights offering may be reviewed
here.
The rights offering is being made pursuant to Cemtrex's
effective registration statement on Form S-1 (Reg. No. 333-213369)
on file with the U.S. Securities and Exchange Commission (the
"SEC"). Investors should consider the information in the
prospectus carefully before making any decision to participate in
the rights offering. Copies of the prospectus were sent to
holders of record on the record date. Requests for copies of
the prospectus and questions from stockholders relating to the
rights offering may be directed to the information agent for the
rights offering, as follows:
Information Agent
Okapi Partners LLC
1212 Avenue of the Americas, 24th Floor
New York, NY 10036
Tel.: (212) 297-0720 or (877) 259-6290 (toll free)
cemtrex@okapipartners.com
Source Capital Group invites any broker-dealers interested in
participating in the rights offering to contact Source's syndicate
department at CETX@sourcegrp.com.
About Cemtrex
Cemtrex, Inc. is a global, diversified industrial and
manufacturing company that provides a wide array of solutions to
meet today's technology challenges and is rapidly growing through
acquisitions. Cemtrex provides manufacturing services of
advanced custom engineered electronics, industrial contracting
services, monitoring instruments for industrial processes and
environmental compliance, and equipment for controlling
particulates, hazardous pollutants and Greenhouse gases used in
carbon trading globally. For more information, please visit
www.cemtrex.com.
About Source Capital Group
Source Capital Group, Inc. was founded in 1992 as a boutique
investment banking firm specializing in small to medium-sized
transactions, and continues to focus its investment banking
activities in those segments of the market. Source Capital
has grown to include businesses in general securities, emerging
market securities, distressed and high yield debt securities,
investment management, mortgages and business lending. Source
Capital's mission is to provide excellent service and independent,
unbiased and tailor-made advice. Source Capital is registered
as a broker-dealer with the SEC and in 50 states, the District of Columbia and Puerto Rico, and is a member of the Financial
Industry Regulatory Authority and the Securities Investor
Protection Corporation.
Forward-Looking Statements
This press release contains 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. Such
forward-looking statements include all statements other than
statements of historical fact. These forward-looking statements are
inherently difficult to predict. Actual results, including
all matters relating to the rights offering and all matters
relating to our future financial results, could differ materially
for a variety of reasons. Information about factors that
could potentially affect our financial results is included in our
registration statement which is referred to above. These and
our other subsequent filings with the SEC identify important
factors that could cause our actual results to differ materially
from those contained in our projections, estimates and other
forward-looking statements.
Cemtrex, Inc. has filed a registration statement (including a
prospectus) with the SEC for the offering to which this
communication relates. Before you invest, you should read the
prospectus in that registration statement and other documents that
Cemtrex has filed or files in the future with the SEC for more
complete information about Cemtrex and the offering. You may
get these documents for free by visiting EDGAR on the SEC website
at www.sec.gov. Alternatively, Cemtrex will
arrange to send you the prospectus if you request it by calling the
Information Agent at (212) 297-0720 or (877) 259-6290.
Information Agent Contact:
Okapi Partners LLC
1212 Avenue of the Americas, 24th Floor
New York, NY 10036
Tel.: (212) 297-0720 or (877) 259-6290 (toll free)
140026@email4pr.com
Investor Contacts:
Investor Relations
Cemtrex, Inc.
Tel.: (631) 756-9116
140026@email4pr.com
Andrew Haag
Managing Partner
IRTH Communications
140026@email4pr.com
Tel.: (866) 976-4784
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SOURCE Cemtrex, Inc.