CirTran Corporation (CIRX)

[MFlores]

YA Global pushes the stock price low by shorting the stock so that their conversion rate is low- that way they get more shares. Then they can cover the shorts with their converted shares at no loss to them since the conversion price is the “lowest closing bid price … during the 20 days prior to the payment date.” They are not selling the bulk of their shares.

From the Cirtran10-K:
“We continue to have the right, subject to the consent of YA Global, to pay all or any portion of the payments listed above in common stock, with the conversion price to be used to determine the number of shares being equal to the lowest closing bid price of our common stock during the 20 trading days prior to the payment date. “