Cemtrex Regains Compliance with NASDAQ Listing Requirement

Rhea-AI Summary

Cemtrex (NASDAQ: CETX) has successfully regained compliance with Nasdaq's minimum bid price requirement under Listing Rule 5550(a)(2). The company, which received a notification of non-compliance on June 14, 2024, due to its stock trading below $1 for 30 consecutive business days, implemented a 1-for-35 reverse stock split effective November 26, 2024. The reverse split allowed Cemtrex to meet the compliance deadline of December 11, 2024. Following the split, the company continues trading under the symbol 'CETX' with a new CUSIP Number 15130G 881.

Positive

• Regained Nasdaq listing compliance, avoiding potential delisting
• Successfully completed 1-for-35 reverse stock split to meet minimum bid requirement

Negative

• Required reverse stock split indicates previous sustained low share price
• Significant share consolidation (35:1) may impact stock liquidity

Insights

Financial Analyst

The regaining of Nasdaq compliance is a critical development for Cemtrex, though achieved through a significant 1-for-35 reverse stock split. While this action prevents immediate delisting concerns, it's important to note that the company's fundamental market capitalization remains unchanged at just $2.3M. The micro-cap status and the need for such a substantial reverse split may indicate underlying financial challenges. Reverse splits often carry negative connotations in the market, as they're typically seen as a last resort to maintain listing requirements. Historical data suggests companies implementing large reverse splits frequently struggle to maintain their post-split price levels. Investors should closely monitor the stock's trading volume and price stability in the coming weeks, as these will be key indicators of market confidence in the company's long-term viability.

Brooklyn, NY, Dec. 13, 2024 (GLOBE NEWSWIRE) -- - Cemtrex Inc. (NASDAQ: CETX, CETXP), an advanced security technology and industrial services company, today announced that it has received a notification letter from the Listing Qualifications Department of The Nasdaq Stock Market LLC (“Nasdaq”) notifying the Company that it has regained compliance with the minimum bid price requirement under Nadaq Listing Rule, 5550(a)(2). The Company’s security will continue to be listed and traded on The Nasdaq Stock Market.

Cemtrex previously received a notification letter from the Nasdaq Listing Qualifications Department on June 14, 2024, notifying the Company that, over the previous 30 consecutive business days, the closing bid price of the Company’s common stock had been below the minimum of $1 per share required for continued listing on the Nasdaq Capital Market under Nasdaq Listing Rule 5550(a)(2). The notification letter stated that the Company would be afforded 180 calendar days (until December 11, 2024) to regain compliance, and that the Company could be eligible for additional time.

Cemtrex effected a 1-for-35 reverse stock split that took effect at 12:01 a.m. Eastern Standard Time on November 26, 2024, and reflected with the Nasdaq Capital Market and in the marketplace at the open of business on November 26, 2024, whereupon the shares of common stock began trading on a split-adjusted basis. In connection with the reverse split, the Company’s common stock continues trading on Nasdaq under the symbol “CETX” but now trades under a new CUSIP Number, 15130G 881.

About Cemtrex

Cemtrex Inc. (CETX) is a company that owns two operating subsidiaries: Vicon Industries Inc and Advanced Industrial Services Inc.

Vicon Industries, a subsidiary of Cemtrex Inc., is a global leader in advanced security and surveillance technology to safeguard businesses, schools, municipalities, hospitals and cities. Since 1967, Vicon delivers mission-critical security surveillance systems, specializing in engineering complete security solutions that simplify deployment, operation and ongoing maintenance. Vicon provides security solutions for some of the largest municipalities and businesses in the U.S. and around the world, offering a wide range of cutting-edge and compliant security technologies, from AI-driven video analytics to fully integrated access control solutions. For more information visit www.vicon-security.com.

AIS – Advanced Industrial Services, a subsidiary of Cemtrex, Inc., is a premier provider of industrial contracting services including millwrighting, rigging, piping, electrical, welding. AIS Installs high precision equipment in a wide variety of industrial markets including automotive, printing & graphics, industrial automation, packaging, and chemicals. AIS owns and operates a modern fleet of custom designed specialty equipment to assure safe and quick installation of your production equipment. Our talented staff participates in recurring instructional training, provided to ensure that the most current industry methods are being utilized to provide an efficient and safe working environment. For more information visit www.ais-york.com.

For more information visit www.cemtrex.com.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including statements relating to the closing of the offering, gross proceeds from the offering, our new product offerings, expected use of proceeds, or any proposed fundraising activities. These forward-looking statements are based on management’s current expectations and are subject to certain risks and uncertainties that could cause actual results to differ materially from those set forth in or implied by such forward looking statements. Statements made herein are as of the date of this press release and should not be relied upon as of any subsequent date. These risks and uncertainties are discussed under the heading “Risk Factors” contained in our Form 10-K filed with the Securities and Exchange Commission. All information in this press release is as of the date of the release and we undertake no duty to update this information unless required by law.

Investor Relations
Chris Tyson
Executive Vice President – MZ North America
Direct: 949-491-8235
CETX@mzgroup.us
www.mzgroup.us

FAQ

What was the ratio of Cemtrex's (CETX) reverse stock split in November 2024?

Cemtrex implemented a 1-for-35 reverse stock split that took effect on November 26, 2024.

When did CETX receive the Nasdaq non-compliance notice?

Cemtrex received the Nasdaq non-compliance notification on June 14, 2024.

What was the deadline for CETX to regain Nasdaq compliance?

The deadline for Cemtrex to regain Nasdaq compliance was December 11, 2024.

What is Cemtrex's new CUSIP number after the reverse split?

After the reverse split, Cemtrex's new CUSIP number is 15130G 881.

Why did CETX implement a reverse stock split?

Cemtrex implemented the reverse stock split to regain compliance with Nasdaq's minimum bid price requirement of $1 per share.