Deal offers 1.5 million rights for 10% preferreds, five-year warrants
By Devika Patel
Knoxville, Tenn., Aug. 30 – Cemtrex, Inc. priced a $15 million rights offering of preferred units, according to a Form S-1 filed Monday with the Securities and Exchange Commission. Source Capital Group, Inc. is the dealer-manager.
Holders will receive one subscription right for every five common shares owned on the record date.
The company will distribute rights for a total of 1.5 million units of one series 1 preferred share and two warrants at $10.00 per unit.
The 10% preferreds are redeemable at $10.00.
The five-year warrant will be exercisable at 115% of the preceding five-day volume weighted average price of the common stock on the record date.
Proceeds will be used for debt repayment, general corporate purposes, operating cash flows, new product development and to support the company’s acquisition growth plan.
The Farmingdale, N.Y., technology company provides manufacturing services of advanced electronics system assemblies, broad-based industrial services, instruments and emission monitors for industrial processes, and industrial air filtration and environmental control systems.
| Issuer: | Cemtrex, Inc.
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| Issue: | Subscription rights, exercisable for units of one series 1 preferred share and two warrants
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| Amount: | $15 million
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| Units: | 1.5 million
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| Price: | $10.00
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| Dividends: | 10%
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| Call: | At par of $10.00
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| Warrants: | Two warrants per unit
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| Warrant expiration: | Five years
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| Warrant strike price: | 115% of the preceding five-day volume weighted average price of the common stock on the record date
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| Dealer-manager: | Source Capital Group, Inc.
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| Pricing date: | Aug. 29
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| Stock symbol: | Nasdaq: CETX
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| Stock price: | $4.80 at close Aug. 26
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| Market capitalization: | $54.84 million
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