CirTran Buys its $2.05 Million, 40,000-Sq. Ft. Office and Manufacturing HQ
Business Wire - April 12, 2005 10:46
SALT LAKE CITY, Apr 12, 2005 (BUSINESS WIRE) -- CirTran Corporation (OTCBB:CIRT), an international full-service contract manufacturer of IT, consumer and consumer electronics products, announced today that it has taken "another step in the American dream" by purchasing the 40,000-square-foot office and manufacturing facility where it has been headquartered since 1996.
Iehab Hawatmeh, CirTran's founder and president, said his company purchased the facility at 4125 South 6000 West in Salt Lake's West Valley City from PFE Properties, LLC for $2.05 million, including $1 million in restricted (for two years) stock at $.05 per share and assumption of a note for $1.05 million. He said the building has been appraised for more than $2.2 million.
"The American dream is to own your own home -- I've heard that since the day I arrived in Salt Lake and America as a 17-year-old student," Mr. Hawatmeh said. "Now CirTran has taken another step in the American dream, and saved itself a great deal of money as well...which is important in America as it is in business anywhere in the world!"
He said the stock included in the purchase "was substantially discounted at approximately 40%," and that the company will inter-only on the note in the short term. "This will save CirTran more than $75,000 in rental payments over the next 12 months alone," Mr. Hawatmeh said.
'Part of Overall Business and Financial Strategy'
Mr. Hawatmeh said the purchase of the building was part of CirTran's overall business and financial plan "to continue to build shareholder equity by increasing revenues, eliminating or converting debt to equity, and obtaining more capital assets. By purchasing the building," he said, "CirTran has added $2 million-plus to our corporate assets and enhanced shareholder equity by more than $1 million."
He said the five-acre site "provides for expansion as needed...for distribution facilities, manufacturing space and offices," Mr. Hawatmeh said.
"During the first quarter-plus of 2005, CirTran has actively implemented many components of our overall plan for the future," he said. "This includes earning the prestigious ISO 9001:2000 certification at our Salt Lake facility, and winning more than $30 million contracts for work in Utah and for our CirTran-Asia subsidiary from major companies, including Lockheed Martin Corporation (NYSE:LMH), Flextronics (NASDAQ:FLEX), Nortel(TM) (NYSE:NT) and Linux Networx(TM), and included contracts to manufacture sold-on-TV consumer electronics products. "In addition," Mr. Hawatmeh said, "CirTran successfully negotiated a settlement with the IRS and converted $2.5 million debt-to-equity, significantly impacting the overall financial strength of the company and our shareholders' investment."
Mr. Hawatmeh also said that CirTran plans to announce its final results for fiscal 2004 within the next week.
About CirTran Corporation
Founded in 1993, CirTran Corporation (OTCBB:CIRT)(www.CirTran.com) is a premier international full-service contract manufacturer of low to mid size volume contracts for printed circuit board assemblies, cables and harnesses to the most exacting specifications. Headquartered in Salt Lake City, CirTran's modern 40,000-square foot non-captive manufacturing facility -- the largest in the Intermountain Region -- provides "just-in-time" inventory management techniques designed to minimize an OEM's investment in component inventories, personnel and related facilities, while reducing costs and ensuring speedy time-to-market.
About CirTran-Asia
CirTran-Asia (www.CirTran-Asia.com) was formed in 2004 as a high-volume manufacturing arm and wholly-owned subsidiary of CirTran Corporation with its principal office in ShenZhen, China. CirTran-Asia operates in three primary business segments: high-volume electronics, fitness equipment and household products manufacturing, focusing on being a leading manufacturer for the multi-billion dollar Direct Response Industry, which sells through infomercials, print and internet advertisements.
This press release contains forward-looking statements within the meaning of section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. With the exception of historical information contained herein, the matters discussed in this press release involve risk and uncertainties. Actual results could differ materially from those expressed in any forward-looking statement.
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SOURCE: CirTran Corporation
CirTran Corporation
Trevor M. Saliba, 801-963-5112
trevor@cirtran.com
or
The Kaminer Group
David A. Kaminer, 914-684-1934
dkaminer@kamgrp.com
