Cemtrex Reminds Rights Holders of January 20 End Date for Subscription Period for Participation in Preferred Stock and Warrant Rights Offering

January 4, 2017

FARMINGDALE, N.Y., Jan. 4, 2017  — (CETX): With the subscription deadline for participating in its subscription rights offering just weeks away, Cemtrex, Inc. today reminded rights holders and broker-dealers of important dates intended to help them successfully participate in the process and fairly subscribe to purchase units in the offering. The offering of units, which can be purchased for $10.00 each, consist of one share of series 1 preferred stock, paying cumulative dividends at the rate of 10% of the purchase price per year, and two series 1 warrants, each to purchase one share of Cemtrex’s common stock at $6.31 per share for a period of five years after the closing of the offering. On January 3, 2017, the closing price of Cemtrex’s common stock, as reported by the Nasdaq Capital Market, was $8.05 per share.

Cemtrex is conducting the rights offering primarily to raise additional capital to supplement its operating cash flows to fund new product development as well as its acquisition growth plan. Cemtrex has chosen to give stockholders of record the opportunity to purchase additional securities to maintain their current percentage ownership in Cemtrex and provide capital at what it believes are attractive price levels.

Cemtrex is offering up to 1,500,000 units, giving stockholders the opportunity to subscribe to up to 1,500,000 shares of its series 1 preferred stock and warrants to purchase up to 3,000,000 shares of common stock, each of which is expected to trade in the over-the-counter market and be quoted on the OTCQB marketplace.

The rights offering includes an over-subscription privilege, which entitles each rights holder that exercises its basic subscription privilege in full the right to purchase additional units that remain unsubscribed at the expiration of the rights offering, if any. Both the basic and over-subscription privileges are subject to proration. The basic and over-subscription privileges may be exercised during the subscription period that ends at 5:00 p.m., Eastern Time, on Friday, January 20, 2017. Cemtrex may extend the offering up to an additional 30 days, in which case the offering would continue on a subscriptions first-in, first-served basis, with the potential for pro rata allocation of shares among participants subscribing on the day, if any, on which the offering becomes over-subscribed. If the rights offering is not fully subscribed following expiration of the rights offering, Source Capital Group, Inc., the dealer-manager for the rights offering, has agreed to use its commercially reasonable efforts to place any unsubscribed units at the subscription price for an additional period of up to 45 days.

A final prospectus for the rights offering may be reviewed here.

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 carefully before making any decision to participate in the rights offering. Copies of the prospectus were sent to holders of record on the record date. 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:

Information Agent

Okapi Partners LLC
1212 Avenue of the Americas, 24th Floor
New York, NY 10036
Tel.: (212) 297-0720 or (877) 259-6290 (toll free)
This email address is being protected from spambots. You need JavaScript enabled to view it.

Source Capital Group invites any broker-dealers interested in participating in the rights offering to contact Source’s syndicate department at This email address is being protected from spambots. You need JavaScript enabled to view it..