Cemtrex Announces Conclusion of Rights Offering and Commencement of Subscription Period for Offering of Unsubscribed Units
FARMINGDALE, N.Y., Jan. 23, 2017 /PRNewswire/ -- Cemtrex, Inc. (NasdaqCM: CETX) today announced the conclusion of its subscription rights offering which expired on January 20, 2017, and the commencement of its offering of the unsubscribed units in the rights offering to the public.
The Company sold 1,356,187 units in the rights offering raising total gross proceeds of $13,561,870 before payment of the dealer-manager fee and other offering expenses.
In the continuing offering of up to 143,813 unsubscribed units, the Company is offering to sell these units, which were first offered to existing shareholders but were not subscribed for in the rights offering, to both current subscribers as well as all other public investors who have yet to subscribe. Each unit consists of one share of the Company's 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 the Company's common stock at $6.31 per share for a period of five years after the issuance date. The purchase price for the units in the public offering remains at $10.00 per unit. The public offering will terminate at 5:00 p.m., Eastern time, on Tuesday, January 31, 2017, unless extended by the Company. Source Capital Group, Inc., the dealer-manager for the rights offering, as well as broker-dealers who are members of the selling group, have agreed to use their commercially reasonable efforts to place the units in this offering to the public. Current shareholders who did not previously subscribe for units in the rights offering may participate in the public offering by contacting the Company, Source Capital Group or their investment advisor.
The Company has applied to have its series 1 preferred stock traded on the Nasdaq Capital Market, however no assurance can be given that the series 1 preferred stock or the series 1 warrants will be traded on any exchange or market. The Company will announce the trading symbol of the securities if and when available.
The offering will be made pursuant to the Company's effective registration statement on Form S-1 (Reg. No. 333-213369) on file with the U.S. Securities and Exchange Commission (the "SEC"). This press release is not an offer to sell these securities and is not soliciting an offer to buy these securities. The offering can be made only by a final prospectus. Investors should consider investment objectives, risks, charges, and expenses carefully before investing. The prospectus included in the registration statement contains this and additional information about the Company and investors should carefully read the prospectus before investing.
