NEW YORK - Cemtrex Inc. (NASDAQ: CETX), a provider of advanced security technology and industrial services, has successfully regained compliance with Nasdaq's minimum bid price requirement, ensuring the continued listing of its securities on the Nasdaq Stock Market. The company had previously been notified on June 14, 2024, that its stock price had fallen below the $1 minimum bid price per share, which is required for continued listing on the Nasdaq Capital Market as per Nasdaq Listing Rule 5550(a)(2). According to InvestingPro data, the company's market capitalization stands at $2.38 million, with its stock showing significant volatility in recent months.
To address this issue, Cemtrex executed a 1-for-35 reverse stock split that became effective on November 26, 2024. Following the reverse split, the company's common stock began trading on a split-adjusted basis under a new CUSIP number. This strategic move brought the company's stock price back into compliance with Nasdaq's requirements.
Cemtrex, which trades under the ticker symbol CETX, operates through two primary subsidiaries: Vicon Industries Inc. and Advanced Industrial Services Inc. Vicon Industries is recognized for its advanced security and surveillance technology, providing mission-critical systems for various sectors, including businesses, schools, and municipalities. Advanced Industrial Services offers a range of industrial contracting services, from millwrighting to electrical work, catering to a variety of industrial markets. InvestingPro analysis reveals the company achieved revenue growth of 19.78% in the last twelve months, with a gross profit margin of 40.91%. However, the company faces challenges with a significant debt burden and negative EBITDA of $3.64 million.
The company's compliance with the Nasdaq listing standards is a critical step in maintaining investor confidence and access to capital markets. The Nasdaq notification letter confirmed that Cemtrex has met the necessary bid price requirement, and its stock will continue to be listed and traded on the Nasdaq Stock Market. For deeper insights into Cemtrex's financial health and valuation metrics, investors can access the comprehensive Pro Research Report available on InvestingPro, which covers over 1,400 US stocks with expert analysis and actionable intelligence.
This announcement is based on a press release statement from Cemtrex Inc. and reflects the company's current status with respect to Nasdaq listing standards.
In other recent news, Cemtrex Inc., an electronic components manufacturer, has seen significant developments. The company successfully regained compliance with Nasdaq's minimum bid price requirement, a crucial step in maintaining its presence on the exchange. In a strategic move, Cemtrex enacted a 1-for-35 reverse stock split, reducing the number of outstanding shares to increase the bid price of its common stock.
Financially, Cemtrex reported a stable third-quarter revenue of $14.7 million in 2024. The Industrial Services segment saw a 49% increase, while the Security segment experienced a 31% decline, resulting in a net loss of $9.1 million for the same quarter. To bolster its balance sheet, Cemtrex conducted a $10 million upsized underwritten public offering.
Cemtrex also adjusted its warrant exercise prices and issued dividends on Series 1 Preferred Stock in the form of additional shares. The company aims for a full year operating profit, focusing on investing in new technologies and marketing to drive future sales in the Security segment. These are the latest developments in Cemtrex's ongoing efforts to maintain a robust capital structure and deliver value to its shareholders.
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