8-K
filed November 29, 2022, 6:59 PM ET
ticker CETX
CIK 0001435064
M&A
confidence high
sentiment positive
materiality 0.80
CEMTREX INC (CETX): M&A transaction — Cemtrex divests Smartdesk and VR assets to CEO; targets $2.5-3M/yr cost savings
CEMTREX INC
- Consideration: $75K cash + 5% royalty (min $820K) for Cemtrex XR; $10K cash + 5% royalty (5 yr) + $1.6M SAFE for Cemtrex Advanced Tech.
- Expected annual cost savings of $2.5-$3 million from restructuring.
- Focus shifts to Vicon (targeting $5-10M recurring revenue in 3-5 yr) and AIS industrial contracting.
- Divested assets include Smartdesk, Cemtrex XR, Virtual Driver Interactive, Bravo Strong, and good tech (formerly Cemtrex Labs).
- Transaction approved by independent board; CEO Saagar Govil abstained from voting.
Key facts
Extracted from this filing and checked against the source text.
M&A Transactions
SEC 8-K Item 2.01/5.01
confidence 0.9
CEMTREX INC completed a disposition involving Saagar Govil for $895,000 comprised of: $75,000 in cash payable at Closing; and 5% royalty...; and $10,000 in cash payable at Closing; 5% royalty...; and $1,600,000 in SAFE (closed 2022-11-22).
- Action
- disposition
- Counterparty
- Saagar Govil
- Consideration
- $895,000 comprised of: $75,000 in cash payable at Closing; and 5% royalty...; and $10,000 in cash payable at Closing; 5% royalty...; and $1,600,000 in SAFE
- Closing
- 2022-11-22
Exact text from the filing
development services for startups to large enterprises. On November 22, 2022, the Company completed the above disposition for the following consideration; ● Cemtrex XR, Inc. ○ $895,000 comprised of: ■ $75,000 in cash payable at Closing; and ■ 5% royalty of all revenues on the Business to be paid 90 days after the end of each calendar year for the next three
View on SEC.gov
Material Agreements
SEC 8-K Item 1.01/1.02
confidence 1.0
CEMTREX INC entered into Asset Purchase Agreement for Cemtrex XR, Inc. with Saagar Govil valued at $75,000 cash and 5% royalty on revenues for three years, with minimum aggregate of $820,000 (effective 2022-11-22).
- Action
- entry
- Agreement
- asset purchase
- Counterparty
- Saagar Govil
- Value
- $75,000 cash and 5% royalty on revenues for three years, with minimum aggregate of $820,000
- Effective
- 2022-11-22
Exact text from the filing
On November 22, 2022, Cemtrex, Inc. (the “Company”) entered into two Asset Purchase Agreements and one Simple Agreement for Future Equity (“SAFE”) with the Company’s CEO, Saagar Govil, to secure the sale of the following brands under the subsidiaries Cemtrex Advanced Technologies, Inc, and Cemtrex XR, Inc. to Mr. Govil, which were consolidated into the Company’s Condensed Consolidated Balance Sheet as of June 30, 2022, as filed with the SEC on August 15, 2022. - SmartDesk – SmartDesk is focused on reinventing the workspace through developing state-of-the-art, modern, fully integrated, workplace solutions. - Cemtrex XR (“CXR”) – CXR is focused on realizing the potential of the metaverse. CXR delivers Virtual Reality (VR) and Augmented Reality (AR) solutions that provide higher productivity, progressive design and impactful experiences for consumer products, and various commercial and industrial applications. The Company is in the process of developing virtual reality applications for co
View on SEC.gov
Material Agreements
SEC 8-K Item 1.01/1.02
confidence 1.0
CEMTREX INC entered into Simple Agreement for Future Equity with Saagar Govil valued at $1,600,000 in common equity upon fundraising or exit above $5M with a $10M cap (effective 2022-11-22).
- Action
- entry
- Agreement
- equity purchase
- Counterparty
- Saagar Govil
- Value
- $1,600,000 in common equity upon fundraising or exit above $5M with a $10M cap
- Effective
- 2022-11-22
Exact text from the filing
On November 22, 2022, Cemtrex, Inc. (the “Company”) entered into two Asset Purchase Agreements and one Simple Agreement for Future Equity (“SAFE”) with the Company’s CEO, Saagar Govil, to secure the sale of the following brands under the subsidiaries Cemtrex Advanced Technologies, Inc, and Cemtrex XR, Inc. to Mr. Govil, which were consolidated into the Company’s Condensed Consolidated Balance Sheet as of June 30, 2022, as filed with the SEC on August 15, 2022. - SmartDesk – SmartDesk is focused on reinventing the workspace through developing state-of-the-art, modern, fully integrated, workplace solutions. - Cemtrex XR (“CXR”) – CXR is focused on realizing the potential of the metaverse. CXR delivers Virtual Reality (VR) and Augmented Reality (AR) solutions that provide higher productivity, progressive design and impactful experiences for consumer products, and various commercial and industrial applications. The Company is in the process of developing virtual reality applications for co
View on SEC.gov
Material Agreements
SEC 8-K Item 1.01/1.02
confidence 1.0
CEMTREX INC entered into Asset Purchase Agreement for Cemtrex Advanced Technologies, Inc. with Saagar Govil valued at $10,000 cash, 5% royalty on revenues for five years, and $1,600,000 in SAFE (effective 2022-11-22).
- Action
- entry
- Agreement
- asset purchase
- Counterparty
- Saagar Govil
- Value
- $10,000 cash, 5% royalty on revenues for five years, and $1,600,000 in SAFE
- Effective
- 2022-11-22
Exact text from the filing
On November 22, 2022, Cemtrex, Inc. (the “Company”) entered into two Asset Purchase Agreements and one Simple Agreement for Future Equity (“SAFE”) with the Company’s CEO, Saagar Govil, to secure the sale of the following brands under the subsidiaries Cemtrex Advanced Technologies, Inc, and Cemtrex XR, Inc. to Mr. Govil, which were consolidated into the Company’s Condensed Consolidated Balance Sheet as of June 30, 2022, as filed with the SEC on August 15, 2022. - SmartDesk – SmartDesk is focused on reinventing the workspace through developing state-of-the-art, modern, fully integrated, workplace solutions. - Cemtrex XR (“CXR”) – CXR is focused on realizing the potential of the metaverse. CXR delivers Virtual Reality (VR) and Augmented Reality (AR) solutions that provide higher productivity, progressive design and impactful experiences for consumer products, and various commercial and industrial applications. The Company is in the process of developing virtual reality applications for co
View on SEC.gov
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