Cemtrex Inc (NASDAQ:CETX) stock fell sharply 31.3% in premarket trading Thursday after the company revealed plans for a 1-for-15 reverse stock split, a move designed to maintain compliance with Nasdaq listing rules.
The reverse split is set to take effect on September 29, 2025, and aims to lift Cemtrex’s share price above the $1 minimum threshold required under Nasdaq’s continued listing standards. To remain compliant with Nasdaq Listing Rule 5550(a)(2), the company must keep its closing bid price above $1 per share for at least ten consecutive business days.
After the split, shareholders holding at least one full share before the effective date will have fractional shares rounded up to the nearest whole share, while holders of less than one share will see fractional shares rounded down.
The company’s trading symbol, CETX, will stay the same, though its CUSIP number will change to 15130G873 once trading begins on a split-adjusted basis.
The reverse split will also affect Cemtrex’s outstanding securities. While the total number of common shares will be reduced to one-fifteenth of the current total, the company’s Adjustable Warrants, currently exercisable for 15,412,956 shares at $0.5737 each, will have their exercise price adjusted and the number of underlying shares significantly increased.
Standard options and warrants will likewise be modified to reflect the 1-for-15 split, with exercise prices multiplied by 15 and the number of purchasable shares reduced to one-fifteenth of the pre-split total.
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