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Cemtrex Inc., an electronic components manufacturer, received notice from Nasdaq on Monday, granting the company an extension to regain compliance with the stockholder’s equity requirement. The Brooklyn-based company, listed under the ticker (NASDAQ:CETX), previously reported stockholder’s equity below the minimum threshold of $2.5 million as of December 31, 2024, falling short of Nasdaq’s continued listing standards.
The extension, detailed in a letter dated April 22, 2025, stipulates that Cemtrex must fulfill its submitted plan and choose one of two alternatives to demonstrate compliance by August 20, 2025. The company can either issue a public report disclosing the deficiency and describing the transaction that resolves the issue or provide a balance sheet with pro forma adjustments to evidence compliance. The company’s stock currently trades near its 52-week low, with a market capitalization of just $2.14 million.
Failure to show compliance in its Form 10-K report for the fiscal year ending September 30, 2025, may result in delisting from the Nasdaq Capital Market. This announcement is based on a press release statement and aims to provide a factual update on Cemtrex’s regulatory status. Track Cemtrex’s financial health metrics and compliance progress with InvestingPro, which offers comprehensive analysis and 14 additional key insights about the company.
In other recent news, Cemtrex Inc. announced that it will be compensating its Series 1 Preferred Stock shareholders with additional shares as a dividend. This move is part of the company’s semiannual obligation to its preferred stock investors, reflecting its commitment to maintaining shareholder value. In another development, Cemtrex received a notification from The Nasdaq Stock Market LLC about a potential delisting due to non-compliance with the minimum stockholder’s equity requirement. The company has until April 7, 2025, to submit a compliance plan to Nasdaq, which could grant them an extension to meet the requirements.
Additionally, Vicon Industries, a subsidiary of Cemtrex, secured a $1.2 million order for a Texas border security project, showcasing the trust in their security solutions. This order is expected to be fulfilled in fiscal Q2 2025 and contributes to the company’s growth strategy in the security sector. The recent developments emphasize Cemtrex’s focus on strategic growth and financial health, as the company navigates regulatory challenges and capitalizes on new opportunities.
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