Cemtrex faces Nasdaq delisting over equity shortfall

Published 24/02/2025, 23:22
Cemtrex faces Nasdaq delisting over equity shortfall

Electronic components manufacturer Cemtrex Inc. has received a notification from The Nasdaq Stock Market LLC indicating a potential delisting due to non-compliance with the minimum stockholder’s equity requirement. The company, listed under the ticker (NASDAQ:CETX), reported stockholder’s equity below the required $2.5 million threshold in its recent financial disclosure for the quarter ending December 31, 2024.

The notice, dated February 21, 2025, does not immediately affect Cemtrex’s common stock listing. The company has until April 7, 2025, to submit a compliance plan to Nasdaq. If Nasdaq accepts the plan, Cemtrex may be granted up to 180 calendar days, until August 20, 2025, to meet the Minimum Stockholder’s Equity Requirement.

Cemtrex is actively working on a strategy to regain compliance and is also addressing the Minimum Bid Price Requirement. However, there is no certainty that the company will achieve compliance or that its plan will be accepted by Nasdaq.

This development is based on a press release statement and serves as a crucial update for investors and stakeholders monitoring Cemtrex’s financial and regulatory status.

In other recent news, Cemtrex Inc. has secured a $1.2 million order for a Texas border protection project through its subsidiary, Vicon Industries. This order involves the provision of Vicon cameras, servers, and additional Valerus Video Management System licenses, expected to be fulfilled in fiscal Q2 2025. Additionally, Cemtrex announced the appointment of Paul J. Wyckoff as its new Chief Financial Officer, effective immediately, following his role as Interim CFO since January 2022. In another significant development, Cemtrex has successfully regained compliance with Nasdaq’s minimum stockholder equity requirement, with a reported equity of $4,710,677, surpassing the minimum threshold. The company also addressed its stock price compliance by executing a 1-for-35 reverse stock split, bringing its stock price back in line with Nasdaq’s listing rules. These recent developments indicate Cemtrex’s efforts to maintain its Nasdaq listing and strengthen its financial operations.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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