CirTran Adds $1.24M in Operational Cash, Cuts Interest Payments by 57%.SALT LAKE CITY -- CirTran Corporation (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :CIRT CIRT Computer Incident Response Team CIRT Critical Incident Response Team CIRT Camara Nacional de La Industria de Radio y Television (Mexican Association of Broadcasters) CIRT Central Institute of Road Transport ), 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 Convertible Debenture Any type of debenture that can be converted into some other security. Notes: For example, a convertible bond can be converted into stock. to Highgate House Funds, Ltd., of New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. . 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 (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become 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 redeem v. to buy back, as when an owner who had mortgaged his/her real property pays off the debt. The term also refers to paying the amount due and all charges after a foreclosure (due to failure to make payments when due) has begun. the debenture debenture (dəbĕn`chər), document acknowledging indebtedness. In Great Britain a debenture is practically the same as a bond, and debenture stock is similar to preferred stock. , 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 Accrued Interest The interest that has accumulated on a bond since the last interest payment up to but not including the settlement date. There are two methods for calculating accrued interest: 1) 360-day year method, used for corporate and municipal bonds. , 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 in·ter·moun·tain adj. Located between mountains or mountain systems, especially lying between the Rocky Mountains and the Sierra Nevada or Cascade Range in the western United States. 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 forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. 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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