Cemtrex Inc. (NASDAQ:CETX), a company specializing in electronic components and accessories, announced the completion of a reverse stock split and the subsequent adjustment of its warrant exercise prices. The reverse stock split, which consolidated shares on a one-for-sixty basis, was effective after the close of business on October 3, 2024.
As of Monday, October 15, 2024, the company reported that the total number of issued and outstanding shares of common stock had been adjusted to 25,586,668. In connection with the reverse stock split, the exercise prices of the company's outstanding Series A and Series B Warrants were also adjusted. The Series A Warrants now have an adjusted exercise price per share of $0.7446. The number of outstanding Series A Warrants is 1,441,927, and there are 15,444,532 Series B Warrants.
This corporate action was disclosed in a Form 8-K filing with the Securities and Exchange Commission (SEC) on Wednesday, October 16, 2024. The filing provided the latest share count and warrant details following the reverse stock split, offering investors updated information on the company's capital structure.
In other recent news, Cemtrex Inc. has announced a 1-for-60 reverse stock split, a strategic move aimed at regaining compliance with Nasdaq's minimum bid price requirement. The decision was approved by the company's stockholders and is expected to increase the per-share trading price of the company's common stock. Alongside this, Cemtrex has also decided to distribute dividends in the form of additional shares on Series 1 Preferred Stock, reflecting the company's commitment to its shareholders.
Turning to earnings and revenue, Cemtrex reported a steady revenue of $14.7 million in the third quarter of 2024. The Industrial Services segment saw a 49% increase in revenue, reaching $8.5 million, while the Security segment experienced a 31% decline to $6.2 million. This resulted in a net loss of $9.1 million for the same quarter, a significant increase from a net loss of $1.2 million in the previous year.
In an attempt to improve its balance sheet and pay off some debt, the company conducted a $10 million upsized underwritten public offering. Looking forward, Cemtrex aims for a full year operating profit, with tight cost controls in place. It also plans to invest in new technologies and marketing to drive future sales in the Security segment.
InvestingPro Insights
Following Cemtrex Inc.'s (NASDAQ:CETX) recent reverse stock split, InvestingPro data provides additional context on the company's financial health and market performance. As of the latest available data, Cemtrex's market capitalization stands at a modest $0.13 million, reflecting its small-cap status. The company's revenue for the last twelve months as of Q3 2024 was $65.32 million, with a notable revenue growth of 19.78% over the same period.
InvestingPro Tips highlight some challenges facing the company. Cemtrex is operating with a significant debt burden and is quickly burning through cash. These factors may have contributed to the decision to implement the reverse stock split. Additionally, the stock has taken a big hit over the last week, with a one-week price total return of -45.63%, and has experienced even more dramatic declines over longer periods, with a one-year price total return of -99.87%.
Despite these challenges, InvestingPro Tips also note that analysts anticipate sales growth in the current year, which could provide some optimism for investors. The stock is currently trading at a low revenue valuation multiple, which may interest value-oriented investors.
For readers seeking a more comprehensive analysis, InvestingPro offers 17 additional tips for Cemtrex, providing a deeper understanding of the company's financial position and market dynamics.
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