Just like CIRT. You know Cornell is toxic and a piece of crap when company after company puts out a PR about their exit.
CirTran Terminates $20 Million SEDA with Cornell Capital, Plans to Withdraw Registration Statement Filed with the SEC
Thursday June 2, 9:30 am ET
SALT LAKE CITY--(BUSINESS WIRE)--June 2, 2005--CirTran Corporation (OTCBB:CIRT - News), an international full-service contract manufacturer of IT, consumer and consumer electronics products, today announced the termination of its financial agreements with Cornell Capital Partners LP relating to a $20 million SEDA (Standby Equity Distribution Agreement) signed more than a year ago and a $5 million equity line of credit signed more than two years ago.
Iehab J. Hawatmeh, CirTran's founder and president, said the termination of his company's relationship with Cornell came after CirTran negotiated and completed issuance of a $3.75 convertible debenture at "far more favorable rates" as the latest step in its strategic financial plan.
Mr. Hawatmeh said CirTran will withdraw the registration statement currently being reviewed by the SEC regarding shares to be issued to Cornell. In addition, he said that CirTran will receive more than 38 million of its shares currently held in escrow by Cornell in connection with the previously-outstanding notes, and that CirTran will not issue any additional shares of common stock to Cornell with relation to the equity line or SEDA.
'Moving Ahead, On Plan'
"CirTran is now moving full-steam ahead in accordance with our overall business plan," said Mr. Hawatmeh, referring to the announcement earlier this week of the $3.75 million convertible debenture issued to Highgate House Funds, Ltd., of New York City, which allowed CirTran to pay off and completely satisfy all outstanding obligations to Cornell.
"As a result of the transactions, CirTran has gained $1.24 million in additional cash infusion to fund our growing operations in the U.S. and China, and also saves approximately $254,000 - more than 57% - in annual interest payments previously made to Cornell at far higher rates than now negotiated," he said.
Mr. Hawatmeh said the additional working capital and lower interest payments "continue the financial progress being made by CirTran, as shown in our 10Q filing last week when we reported positive EBITDA and positive shareholder equity for the first quarter of fiscal 2005."
About CirTran Corporation
Founded in 1993, CirTran Corporation (OTCBB:CIRT - News; 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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