TMCnet News
CirTran Negotiates Conversion of $2.5 Million Debt to Equity, 'Adding Substantially' to Shareholders' Position in CompanySALT LAKE CITY --(Business Wire)-- March 30, 2005 -- CirTran Corp. (OTC BB: CIRT), an international full-service contract manufacturer of IT, consumer and consumer electronics products, said today it has successfully completed the next step in its financial plan by successfully negotiating the conversion of $2.5 million in debt to equity. Iehab Hawatmeh, CirTran's president and CEO, said the debt-to-equity conversion "is expected to result in bottom line savings to the company of approximately $450,000 in interest over the next 12 months, adding substantially to our shareholders' position and positively impacting the company's financial strength." Hawatmeh said that the debt was "negotiated and satisfied with restricted stock, which cannot be sold for two years, and priced at $0.04, some 20% above the current market price." He said that the debt-to-equity conversion, along with the earlier resolution of a $2.3 million liability to the IRS (see "CirTran Corporation Completes Compromise Settlement with IRS," Business Wire, Jan. 23, 2005), has improved the company's overall financial position by some $4 million. "Today," he said, "with the successful completion of this next and very important step, we have made CirTran a sounder, stronger company in keeping with our plan for financial stability and growth." "Very Positive First Quarter" "This has been a very positive first quarter for CirTran and our CirTran-Asia subsidiary," he said. "Since the beginning of the year, CirTran has been awarded important new manufacturing contracts for our Salt Lake City and Asian facilities totaling nearly $30 million, which is nearly four times our total sales for 2004. With these significant upturns in new business and revenue," he said, "CirTran has been continuing to execute our overall financial strategy as well." Hawatmeh said that CirTran plans to file its Form 10K for fiscal 2004 in keeping with SEC requirements. About CirTran Corp. Founded in 1993, CirTran Corp. (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 manufacturing facility is the largest in the Intermountain Region, providing "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 Corp. 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. |
