~CIRT News...
CirTran Adds $1.24M in Operational Cash, Cuts Interest Payments by 57%
Jun 1, 2005 8:31:00 AM
Copyright Business Wire 2005
SALT LAKE CITY--(BUSINESS WIRE)--June 1, 2005--
CirTran Corporation (OTCBB:CIRT), an international full-service contract manufacturer of IT, consumer and consumer electronics products, today announced the successful negotiation and completion of the latest step in its strategic financial plan, resulting in a major cash infusion for operations while cutting interest payments by more than half.
Iehab J. Hawatmeh, CirTran's founder and president, said the company issued a $3.75 million convertible debenture to Highgate House Funds, Ltd., of New York City. With funds received, he said, CirTran paid off $1.7 million and $565,000 notes to Cornell Capital Partners LP, satisfying its obligations to Cornell.
"As a result of this transaction, CirTran gains a net cash infusion of approximately $1.24 million, to be used to fund our growing operations in the U.S. and China," Mr. Hawatmeh said. "CirTran will also realize a savings of $254,000 - more than 57% - in annual interest payments," he said, noting that the $1.7 million note to Cornell had been at 24% and the lesser note at 6% interest, respectively.
"Having additional capital and our interest payments very substantially reduced continues the financial turnaround that saw CirTran report positive EBITDA of $26,518 and positive shareholder equity for the first quarter of fiscal 2005 in its 10-Q filing with the SEC last week," he said.
CirTran, he said, can redeem the debenture, which bears interest at 5%, at any time for 105% of the payment due. When the registration is declared effective by the SEC, Highgate can convert up to $250,000 worth of the principal amount, plus accrued interest, at market price in any consecutive 30-day period when CirTran stock is $0.10 per share or less at the time of conversion, and up to $500,000 worth of principal, plus interest, at $0.10 per share in any consecutive 30-day period when the market price of CirTran stock is higher than $0.10 at the time of conversion.
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.
Source: CirTran Corporation
News 
Market Data 
Discover 
