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Client Cemtrex, Inc. Raises $14.0 Million in Registered Subscription Rights Offering

February 7, 2017

On January 31, 2017, Olshan client Cemtrex, Inc., a rapidly growing diversified technology company whose shares of common stock are traded on the Nasdaq Capital Market, completed a highly successful registered subscription rights offering. In the rights offering, Cemtrex sold 1,401,875 shares of its newly-created series 1 preferred stock at $10.00 per share and paying cumulative dividends at the rate of 10% of the purchase price per year, and 2,803,750 series 1 warrants, each to purchase one share of the company’s common stock at $6.31 per share (115% of the five-day average price prior to the offering’s record date) for a period of five years after the issuance date, raising total gross proceeds of $14,018,750 before payment of the dealer-manager fee and other offering expenses. Cemtrex has applied to have its series 1 preferred stock and warrants traded on the Nasdaq Capital Market. Source Capital Group, Inc. served as the dealer-manager for the rights offering. The rights offering was made pursuant to Cemtrex’s effective registration statement on Form S-1 on file with the U.S. Securities and Exchange Commission. Corporate partner Spencer Feldman led the representation of Cemtrex, with assistance from Kenneth Schlesinger.

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