#United States #Las Vegas #CirTran Corporation #YII PN #Standby Equity

CirTran Corporation's Standby Equity Facility

CirTran Corporation, trading under OTCID: CIRX, has recently made headlines by announcing a Standby Equity Purchase Agreement (SEPA) with YA II PN, Ltd. This remarkable facility allows the company to raise up to $10 million in equity capital over the span of 24 months. The announcement was made on December 30, 2025, illustrating the corporation's strategic efforts to bolster its financial standing.

Details of the Agreement

Under this agreement, CirTran has the option to sell shares of its common stock to YA II as needed. Importantly, the company is not bound by any minimum draw requirements, providing it with full autonomy over the timing and quantity of shares issued. This flexibility enables CirTran to navigate the market landscape effectively and seize opportunities as they arise.

The shares will be sold at a price determined by the lowest volume-weighted average market price of CirTran's stock during the specified pricing period, as described in the company's Form 8-K. Furthermore, the agreement establishes customary ownership limits and imposes restrictions on short selling by YA and its affiliates, ensuring a controlled distribution of shares.

Purpose of the Proceeds

Citing the potential proceeds from this equity facility, CirTran plans to use the funds primarily for working capital and various corporate necessities, including debt reduction. As part of a collaborative agreement with Tekfine, LLC, the corporation intends to allocate 50% of any net proceeds generated from the SEPA towards reducing its financial obligations to Tekfine. Notably, Tekfine has consented to refrain from selling shares resulting from the conversion of its notes throughout the duration of this facility, indicating a cooperative approach to financial management between the two entities.

CEO's Insight

Iehab J. Hawatmeh, the CEO of CirTran Corporation, expressed optimism regarding this financing structure, stating, "This financing structure provides us with flexible access to capital while supporting our ongoing balance sheet improvement efforts." Such statements reflect the company's commitment to strengthening its financial foundation and ensuring sustainable growth as it navigates the complexities of the market.

About CirTran Corporation

Celebrating its 32nd anniversary, CirTran Corporation has transitioned from its roots as an electronics contract manufacturer to a prominent global producer and distributor of products in the adult lifestyle and entertainment sectors. The company’s focus on innovation and market responsiveness positions it favorably within high-demand consumer segments, supporting its ambition for continued diversification and international expansion.

As CirTran takes steps to enhance its investment potential and alleviate corporate debt, this Standby Equity Purchase Agreement with YA II demonstrates a proactive approach to capital management. With financial strategies aligned towards growth and stability, CirTran Corporation is poised for a prosperous future in the dynamic landscape of its industry.

Conclusion

In summary, CirTran's strategic move via the Standby Equity Purchase Agreement not only unlocks vital capital but also fortifies its operational framework, setting the stage for robust growth trajectory. Stakeholders and investors alike will be watching closely as the company embarks on this journey to maximize its equity potential and market presence.