Cemtrex completes divestiture of non-core assets to focus on accelerating Its Vicon and AIS brands - SecurityInfoWatch

Brooklyn, NY, Nov. 29, 2022 (GLOBE NEWSWIRE) -- Cemtrex Inc. (NASDAQ: CETX, CETXP), a exertion institution driving innovation successful the Internet of Things (IoT), security, instrumentality imaginativeness & artificial intelligence, and augmented & virtual reality, contiguous announced that the Company has undertaken a transformative restructuring successful which it has divested its Smartdesk and VR subsidiaries successful bid to absorption exclusively connected its Vicon Industries and Advanced Industrial Services (AIS) businesses. The restructuring is the culmination of Cemtrex’s antecedently announced strategical displacement towards prioritizing its halfway businesses.

“Surveillance manufacture trends are rapidly evolving toward Video Surveillance arsenic a Service (VSaaS) arsenic end-users question a reliable root of video surveillance and entree power technologies acceptable for today’s highly dynamic environment,” said Saagar Govil, Chairman and CEO of Cemtrex. “We proceed to spot escalating request from large customers for Vicon’s expanding enactment of Valerus products and bundle services, with Allied Market Research predicting the planetary VSaaS and video surveillance marketplace volition scope implicit $83 cardinal by 2030 with a CAGR of 10.9% betwixt 2021 and 2030.

“We judge Vicon is connected a beardown way towards $5-10 cardinal of recurring gross successful the adjacent 3 to 5 years arsenic the manufacture shifts to SaaS solutions leveraging AI and unreality exertion solutions. We judge this displacement successful absorption to seizure important near-term recurring gross opportunities successful Vicon volition maximize shareholder worth implicit the adjacent respective years.

“For AIS, the institution continues to beryllium a beardown root of currency travel with precocious repetition concern and a well-known reputation. We expect to spot continued maturation successful this conception driven by an summation successful request for concern contracting and predictive attraction services, arsenic the concern system successful the US continues to thrive.”

As portion of the strategical restructuring, connected November 22, 2022, Cemtrex completed a divestiture of its Smartdesk, CXR services, Cemtrex Labs, Virtual Driver Interactive and Bravo Strong assets and commercialized liabilities, allowing Cemtrex to absorption connected the Vicon and AIS businesses. The divestment of the subsidiaries was accomplished done a merchantability to existing absorption of Cemtrex, led by Mr. Saagar Govil. The Company’s autarkic Board of Directors and absorption worked with autarkic 3rd parties to found valuations for the assets included successful the transaction. The Company’s Board of Directors, excluding Saagar Govil who abstained from each voting connected these agreements, approved these actions and agreements.

Govil continued, “In the existent environment, our Smart Desk and AR/VR businesses person proven challenging to thrust charismatic returns and are amended suited towards being backstage companies. This divesture volition let america to absorption connected helping Vicon accelerate the implementation of VSaaS and AI-based video analytics for our planetary lawsuit base, and increasing AIS concern contracting services successful a precocious repetition business.”

On November 22, 2022, the Company completed the disposition of assets and definite liabilities for the pursuing consideration:

• Cemtrex XR, Inc.
• $895,000 comprised of:
• $75,000 successful currency payable astatine Closing
• 5% royalty of each revenues connected the Business to beryllium paid 90 days aft the extremity of each calendar twelvemonth for the adjacent 3 years; and should the full sum of royalties owed beryllium little than $820,000 astatine the extremity of the three-year period, Purchaser shall beryllium obligated to wage the quality betwixt $820,000 and the royalties paid.
• Cemtrex Advanced Technologies, Inc.
• $10,000 successful currency payable astatine Closing
• 5% royalty of each revenues connected the Business to beryllium paid 90 days aft the extremity of each calendar twelvemonth for the adjacent 5 years; and
• $1,600,000 successful “SAFE” (common equity) astatine immoderate consequent fundraising oregon exit supra $5M with a $10M cap.

“With the divestments completed, we volition beryllium capable to thrust maturation superior to Vicon and absorption connected a instrumentality to profitability. We volition put successful Vicon’s state-of-the-art end-to-end video surveillance information strategy that provides customers with a implicit solution with the quality to show LPR, entree power and video absorption each from Valerus. Taken together, we are excited to beryllium embarking connected this translation of our concern and judge our shareholders volition amended admit the semipermanent worth and maturation imaginable that it facilitates. I look guardant to providing much updates arsenic we determination guardant into 2023,” concluded Govil.

About Cemtrex

Cemtrex, Inc. (CETX) is simply a starring multi-industry exertion institution that is driving innovation successful markets specified arsenic the Internet of Things (IoT), Augmented and Virtual Reality (AR & VR), and Artificial Intelligence and Computer Vision (AI & CV) successful a wide scope of sectors, including but not constricted to user products, concern manufacturing, integer applications, and intelligent information & surveillance systems. www.cemtrex.com