Cemtrex Receives Extension to Regain Compliance with Nasdaq Listing Requirements

Cemtrex Inc., a Delaware-based company listed on the Nasdaq Capital Market under the symbol CETX, recently received a notice from Nasdaq allowing an extension to regain compliance with listing rules. The company disclosed on October 23, 2024, that it has been granted an extension by Nasdaq concerning the Minimum Stockholder’s Equity Requirement set by Nasdaq Marketplace Rule 5550(b)(1).

Back in August 2024, Cemtrex received a notification from Nasdaq because the stockholder’s equity fell below $2,500,000. Additionally, in June 2024, the company faced an issue with the closing bid price of its common stock on Nasdaq, which was below $1.00 for 30 consecutive trading days, failing to meet the Minimum Bid Price Requirement under Nasdaq Marketplace Rule 5550(a)(2).

The terms of the extension require Cemtrex to complete a submitted plan by February 17, 2025, opting for one of two alternatives to demonstrate compliance with the Rule.

Alternative 1 entails submitting a publicly available report to the SEC and Nasdaq, including disclosure of the deficiency letter, details of the transaction enabling compliance, an affirmative compliance statement, and a notification of Nasdaq’s monitoring.

Alternatively, under Alternative 2, Cemtrex must submit a report with steps similar to Alternative 1, along with a pro forma balance sheet evidencing compliance with the stockholders’ equity requirement.

Regardless of the alternative chosen, if compliance is not evidenced upon filing the periodic report by March 31, 2025, Cemtrex might face delisting. In the case of non-compliance, written notification will be provided, and an appeal process will be available.

For any inquiries regarding the matter, Rachel Scherr, Director of Nasdaq Listing Qualifications, can be contacted at +1 202 748 4488.

The extension provides Cemtrex with a specified timeline and requirements to work on regaining compliance with Nasdaq’s listing standards. Moving forward, Cemtrex will need to meticulously adhere to the outlined terms to maintain its listing on the Nasdaq Capital Market.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Cemtrex’s 8K filing here.

Cemtrex Company Profile

Cemtrex, Inc operates as a technology company in the United States and internationally. It operates through Security, Industrial Services, and Cemtrex Corporate segments. The company offers browser-based video monitoring and analytics-based recognition systems, cameras, servers, and access control systems for security and surveillance in industrial and commercial facilities, federal prisons, hospitals, universities, schools, and federal and state government offices; and provides critical security and video surveillance solutions utilizing artificial intelligence based data algorithms.