FARMINGDALE, N.Y., Dec. 27, 2016 /PRNewswire/ -- Cemtrex, Inc. (NasdaqCM: CETX), is launching tomorrow its previously announced $15.0 million subscription rights offering.

The offering will allow Cemtrex's stockholders of record to purchase up to 1,500,000 units, each consisting of one share of series 1 preferred stock, paying cumulative dividends at the rate of 10 percent of the purchase price per year, and two five-year series 1 warrants, upon the exercise of subscription rights at the purchase price of $10.00 per unit. The exercise price of the series 1 warrants has been set at $6.31 per share, representing 115 percent of the five-day volume weighted average price per share of common stock prior to and including the record date of the rights offering.

Cemtrex CEO Saagar Govil said, "We are conducting the rights offering primarily to raise additional capital to supplement our operating cash flows to fund both our new product development and our aggressive acquisition growth plan. We have chosen to give our stockholders the first opportunity to purchase additional securities to maintain their current percentage ownership in Cemtrex and provide capital to us at what we believe are attractive price levels."

If the rights offering is not fully subscribed following expiration of the rights offering on January 20, 2017 (subject to extension for up to 30 days), Source Capital Group, Inc., the dealer-manager for the rights offering, has agreed to use its efforts to place any unsubscribed units at the subscription purchase price for an additional period of up to 45 days.

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 contained in the registration statement carefully before making any decision to participate in the rights offering. Copies of the prospectus and related materials are being sent to holders of record on the record date of December 23, 2016. 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:

• Prev
• Next