Item 2.01Item 2.01 - Completion of Acquisition
Item
2.01 Completion of Acquisition or Disposition of Assets
On
February 5, 2026, Cemtrex, Inc. (the “Company”), through its wholly owned subsidiary Advanced Industrial Services (“AIS”),
completed the acquisition of substantially all of the assets of Richland Industries LLC, a Tennessee limited liability company (“Richland”)
pursuant to an Asset Purchase Agreement dated February 5, 2026 (the “Asset Purchase Agreement”) by and among AIS Tennessee,
Inc., a newly formed wholly owned subsidiary of AIS (“Buyer”), Richland, and Joseph Whelan Jr, an individual residing in
state of Tennessee (“the “Owner” and collectively with the Richland, the “Seller Parties”).
As
a result of the transaction, Richland’s business operations have been integrated into the Company’s Industrial Services Segment,
and Buyer has become the owner of the acquired assets. Concurrently, AIS Leasing Company, another wholly owned subsidiary of the Company,
acquired Richland’s primary operating facility located at 1905 Mine Road, Pulaski, Tennessee (the “Facility”) from
RI Real Estate, LLC pursuant to a Sale Agreement dated February 5, 2026 (the “Real Estate Purchase Agreement”).
The
purchase price for the business assets was $600,000, which was financed through a note payable issued by Fulton Bank. This note carries
interest of 6.09% and matures on February 1, 2031.
The
purchase price for the Facility was $4,900,000 (the “Real Estate Purchase Price”). The Company financed $3,920,000 of the
Real Estate Purchase Price through a mortgage issued by Fulton Bank, which carries interest of SOFR plus 2.75% and matures on February
1, 2041. The balance of the Real Estate Purchase Price, together with taxes, closing costs, and fees, was paid in cash.
The
Agreement has been included to provide investors with information regarding its terms. The representations, warranties, and covenants
contained in the Agreement were made only for the purposes of the Agreement, were made as of specific dates, were made solely for the
benefit of the parties to the Agreement, and may not have been intended to be statements of fact, but rather as a method of allocating
risk and governing the contractual rights and relationships among the parties to the Agreement. In addition, such representations, warranties,
and covenants may have been qualified by certain disclosures not reflected in the text of the Agreement and may apply standards of materiality
and other qualifications and limitations in a way that is different from what may be viewed as material by the Company’s shareholders.
None of the Company’s shareholders or any other third party should rely on the representations, warranties, and covenants, or any
descriptions thereof, as characterizations of the actual state of facts or conditions of the Company, Richland, or any of their respective
subsidiaries or affiliates. Moreover, information concerning the subject matter of representations and warranties may change after the
date of the Agreement, which subsequent information may or may not be fully reflected in the Company’s public disclosures. The
Agreement should not be read alone, but should instead be read in conjunction with the other information regarding the Company that is
or will be contained in, or incorporated by reference into, the Forms 10-K, Forms 10-Q, Forms 8-K, and other documents that the Company
files or has filed with the SEC.
The
foregoing description of the Asset Purchase Agreement, the Real Estate Purchase Agreement, and the transactions is a summary, does not
purport to be complete, and is qualified in its entirety by reference to the full text of the Asset Purchase Agreement and Real Estate
Purchase Agreement, copies of which are filed as Exhibit 2.1 and Exhibit 10.1, respectively, to this Current Report on Form 8-K and are
incorporated herein by reference.
.