CIRTRAN CORP (CIRX) — Current Report

Key Insights

• CirTran Corporation entered into a $10 million Standby Equity Purchase Agreement with YA II PN, Ltd., which provides the company with the right to sell shares of its common stock to YA at its discretion over the next 24 months.
• The agreement requires CirTran to apply 50% of any proceeds received from share sales to YA to reduce its existing debt to Tekfine, LLC, which has agreed to refrain from selling its shares during the term of the agreement.
• The agreement includes an ownership limitation that restricts YA from acquiring more than 4.99% of CirTran's outstanding common stock, and both YA and Tekfine have agreed not to engage in short sales or establish net short positions in CirTran's stock during the agreement's term.