Cemtrex signs standstill with Streeterville; must pay 50% of equity proceeds or $4M

CEMTREX INC

Streeterville agrees to one-year redemption standstill on two notes ($5.755M Sep-2021 and $9.205M Feb-2022) conditional on at least $9M financing by May 10, 2024.
Cemtrex must pay the greater of $4M or 50% of net proceeds from any equity sale during the standstill period, applied to the notes.
If the financing closes by May 10, maturity dates extend to June 30, 2025 (Sep note) and Feb 22, 2026 (Feb note).
If financing does not close by May 10, the agreement automatically terminates and is void ab initio.
Standstill ends immediately on any breach; Streeterville may then enforce all remedies under the notes.

Key facts

Extracted from this filing and checked against the source text.

Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.9

CEMTREX INC entered into Standstill Agreement with Streeterville Capital, LLC valued at the greater of $4 million or fifty percent (50%) of the net proceeds (effective 2024-04-30).

Action: entry
Counterparty: Streeterville Capital, LLC
Value: the greater of $4 million or fifty percent (50%) of the net proceeds
Effective: 2024-04-30

Exact text from the filing

On April 30, 2024, Cemtrex, Inc., a Delaware corporation (the “Company”) entered into a Standstill Agreement (the “Agreement”) with Streeterville Capital, LLC (“Streeterville”).

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Source: SEC EDGAR

accession 0001493152-24-017351

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