CirTran Corporation (CIRX)

[MFlores]

Richard-Important to consider facts.

Playbev and Playboy signed a license agreement in 2006 granting Play Bev a limited right to manufacture and sell Playboy-branded energy drinks. The agreement was set to expire March 31, 2012, and contained a renewal term of five years.

Playbev went into Chapter 11 bankruptcy in August 2011. In March 2012 Playboy and PlayBev extended the licensing agreement through July 31, 2012, to allow PlayBev and Playboy to negotiate a potential new licensing agreement.

Cirtran’s 2013 10K states: “Playbev reached a settlement with Playboy that would have provided for a new license conditioned on bankruptcy court approval of PlaybBev’s reorganization plan, PlayBev’s payment of $2.0 million to Playboy, and other provision, but PlayBev was unable to obtain the funding needed to pay Playboy the initial amount or otherwise implement the reorganization plan, so that plan was abandoned and the settlement agreement and the new Playboy license did not become effective.

The Company goes on to state: “Litigation respecting the status of the PlayBev license to market Playboy-licensed energy drinks places the validity of that license at issue and may result in termination of that license …”

It is all about the status of the license agreement. Playboy is not going to settle if the trademark agreement was no longer effective.