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CirTran Corporation (OTCBB:CIRT), an international full-service contract manufacturer of IT, consumer and consumer electronics products, announced today that it has received back 38,280,000 shares previously held in escrow by Cornell Capital Partners LP.
Iehab J. Hawatmeh, CirTran's founder and president, said the returned shares "significantly reduce the float of CirTran stock and marks the end of financial agreements with and obligations to Cornell," as announced two months ago (see "CirTran Terminates $20 Million SEDA with Cornell Capital, Plans to Withdraw Registration Statement Filed with the SEC," Business Wire, June 2). At that time, Mr. Hawatmeh said that CirTran had successfully negotiated and completed issuance of a $3.75 convertible debenture "at far more favorable rates" as the latest step in its strategic financial plan.
"The shares received back from Cornell are being retired," he said.
"Over the past year, CirTran has adhered to a plan to reduce and control obligations, including conversion of some debt to equity, while moving toward profitability. The termination of our relationship with Cornell and the return of these shares is an important step in the recovery and resurgence of CirTran, with business growing in the U.S. and through our CirTran-Asia subsidiary."
On Target to Report Record Sales and Profitable Quarter
Mr. Hawatmeh said CirTran is "on target" with its projection of reporting record sales for the second straight quarter when it files a 10-Q later this month, and that it will also report its first profitable quarter since becoming a public company in 2000.
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.
