CirTran Terminates $20 Million SEDA with Cornell Capital, Plans to Withdraw Registration Statement Filed with the SEC.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 termination of its financial agreements with Cornell Capital Partners LP relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc a $20 million SEDA SEDA Staff and Educational Development Association SEDA Sustainable Energy Development Authority (Australia) SEDA Social and Economic Data Analysis SEDA Special Ed Assistant SEDA South East Drift Association (Standby Equity Distribution Agreement In Finance, SEDA stands for a Standby Equity Distribution Agreement. This is an agreement whereby a small publicly-traded company arranges to raise additional capital by selling new stock without making a formal Secondary Market Offering to the market. ) 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 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. 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 escrow Instrument, such as a deed, money, or property, that constitutes evidence of obligations between two or more parties and is held by a third party. It is delivered by the third party only upon fulfillment of some condition. 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 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. , 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 (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 and positive shareholder equity for the first quarter of fiscal 2005." 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 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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