CirTran secures $10 million standby equity facility

CirTran Corporation (OTCID: CIRX) entered into a Standby Equity Purchase Agreement with YA II PN, Ltd., providing access to up to $10 million in equity capital over 24 months at the company's discretion, according to a company statement.

The agreement grants CirTran the right to sell shares of its common stock to YA from time to time, subject to customary conditions. The company maintains full control over timing and amounts of any issuances, with no minimum draw requirements.

Shares sold under the facility will be priced at the lowest volume-weighted average market price of CirTran's common stock during the applicable pricing period. The agreement includes ownership limitations and restrictions on short selling by YA and its affiliates.

CirTran expects to use proceeds for working capital and general corporate purposes, including debt reduction. Under its agreement with Tekfine, LLC, the company will use 50% of net proceeds from the facility to reduce indebtedness to Tekfine, which agreed to refrain from selling shares received upon conversion of its notes during the facility term.

"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.

CirTran operates as a global producer and distributor of products serving the adult lifestyle and entertainment marketplace. Additional details regarding the agreement are included in the company's Form 8-K filing.

You May Also Be Interested In