CETX secures $7,000,000 cash; 8% rate after SOFR period
Rhea-AI Filing Summary
Cemtrex, Inc. entered a material definitive agreement, issuing a promissory note to Streeterville Capital, LLC with an original principal of $7,025,000. After $25,000 in original issuance fees, the company received $7,000,000 in cash.
Interest accrues at the daily SOFR rate from November 7, 2025 through December 31, 2025, then at 8% per annum beginning January 1, 2026. If the note remains outstanding on January 1, 2026, a one-time additional interest fee of $1,050,000 will be added to the balance. The note matures eighteen months from issuance, with redemptions starting six months after issuance. Cemtrex states it intends to use the cash proceeds to complete potential acquisitions.
Positive
- None.
Negative
- None.
Insights
$7.0M cash in via note; SOFR then 8% with fee trigger
Cemtrex secured liquidity by issuing a note with $7,025,000 principal and net proceeds of $7,000,000. The structure features SOFR-based interest through December 31, 2025, then a fixed 8% from January 1, 2026. A one-time $1,050,000 fee applies if still outstanding on that date.
The instrument matures eighteen months from issuance with redemptions beginning at six months, creating a near- to mid-term amortization profile. Proceeds are earmarked to complete potential acquisitions, linking financing to deal execution.
Key dependencies include actual acquisition timing and the company’s ability to redeem before the January 1, 2026 fee trigger to limit cost. Subsequent disclosures may detail redemption schedules and acquisition deployment.
8-K Event Classification
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Item 1.01 Entry into a Material Definitive Agreement
On November 7, 2025, the Company issued a Promissory Note (“Note”) with Streeterville Capital, LLC in the original principal amount of $7,025,000. From November 7, 2025, until December 31, 2025, interest will accrue on the outstanding balance of this Note at a per annum rate of interest equal to the daily Secured Overnight Financing Rate (SOFR) as quoted by the Federal Reserve Bank of New York. From January 1, 2026, until this Note is paid in full, interest will accrue at the rate of eight percent (8%) per annum. After original issuance fees of $25,000, the Company received cash of $7,000,000 for this agreement. If this Note is outstanding on January 1, 2026, a one-time additional interest fee of $1,050,000.00 will automatically be added to the outstanding balance. This Note matures eighteen (18) months from the issuance date with redemptions beginning at six (6) months from the issuance date. The Company intends to use the cash proceeds to complete potential acquisitions.
Item 9.01 Financial Statements and Exhibits
| Exhibit No. | Description | |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| CEMTREX, INC. | ||
| Date: November 12, 2025 | By: | /s/ Saagar Govil |
| Saagar Govil | ||
| Chairman, President and Chief Executive Officer | ||
FAQ
What financing did CETX announce in its 8-K?
How much cash did CETX receive from the note?
What are the interest terms on the CETX note?
Is there any additional fee tied to the CETX note?
When does the CETX note mature and when do redemptions begin?
What does CETX plan to do with the proceeds?
