Why Did Cemtrex Stock Tumble Over 19% Today?

• The company said that it will sell about 800,000 shares to a single institutional investor at $2.50 per share. 
• The sale is expected to be completed by Dec. 23, 2025. 
• Proceeds from the sale are expected to be used for general corporate purposes, including working capital and potential acquisitions.

Cemtrex Inc. (CETX) shares plunged over 19% on Tuesday after the company announced a $2 million registered direct offering.

The technology and industrial services company said it will sell about 800,000 shares to a single institutional investor at $2.50 per share. The direct offering price represents a discount of more than 16% to the stock’s closing price on Monday, when the shares closed at about $3.

Deal Contours

The sale is expected to be completed by Dec. 23, 2025, and the proceeds from the transaction would be used for general corporate purposes, including working capital and potential acquisitions, the company said.

Earlier this month, the company sold 666,667 shares to an institutional investor at $3 per share.

Expansion Efforts

In November, Cemtrex bought Invocon Inc., a Texas-based aerospace and defense engineering firm, for $7.06 million to expand its technology capabilities and improve operating income in 2026. The company also signed a letter of intent (LOI) to acquire a Tennessee-based industrial services business to expand its geographic footprint in the Advanced Industrial Services segment.

Cemtrex also explored cryptocurrencies earlier this year when it acquired $1 million in Solana tokens to bolster its security offering with blockchain.

The company’s CEO and Chairman, Saagar Govil, said in an earlier statement that Cemtrex would pursue additional acquisitions to expand scale, recurring earnings power, and higher margins in 2026.

How Are Stocktwits Users Reacting?

On Stocktwits, retail sentiment around CETX stock remained in the ‘neutral’ territory over a day, and message volume climbed to ‘high’ from ‘extremely low’ levels from a day ago.

One user said that the new $2 million sale would be good for the company’s growth.

Shares of CETX are down by more than 93% this year.

For updates and corrections, email newsroom[at]stocktwits[dot]com.
 

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