CirTran Announces $10 Million Standby Equity Facility

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CirTran Corporation announced that it has entered into a Standby Equity Purchase Agreement with YA II PN, Ltd., providing the Company with the ability to raise up to $10 million in equity capital over a 24-month period, at the Company's discretion.

Under the agreement, CirTran has the right, but not the obligation, to sell shares of its common stock to YA from time to time, subject to customary conditions. There are no minimum draw requirements, and the Company maintains full control over the timing and amount of any issuances.

Any shares sold under the facility will be priced based at the lowest volume-weighted average market price of the Company's common stock during the applicable pricing period, as further described in the Company's Form 8-K. The agreement includes customary ownership limitations and restrictions on short selling by YA and its affiliates  .

The Company expects to use proceeds, if any, for working capital and general corporate purposes, including debt reduction. Pursuant to our agreement with Tekfine, LLC, we will be using 50% of net proceeds from the SEPA, if any, to reduce our indebtedness to Tekfine, LLC, which has agreed to refrain from selling shares received upon conversion of its notes during the term of the facility.

"This financing structure provides us with flexible access to capital while supporting our ongoing balance sheet improvement efforts," said Iehab J. Hawatmeh, Chief Executive Officer of CirTran Corporation.

Additional details regarding the agreement are included in the Company's Current Report on Form 8-K.