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News  ›  Benzinga

CirTran Corporation Announces $10 Million Standby Equity Facility

Benzinga Logo Benzinga By Prnewswire
CirTran Corporation Announces $10 Million Standby Equity Facility

CirTran Corporation (CIRX) announced a Standby Equity Purchase Agreement with YA II PN, Ltd., providing up to $10 million in equity capital over 24 months. The company has discretion over timing and amount of share issuances, with proceeds designated for working capital, general corporate purposes, and debt reduction. 50% of net proceeds will be used to reduce indebtedness to Tekfine, LLC.

Insights
CIRX   neutral

The announcement provides flexible capital access which is positive for liquidity, but the need for equity financing and debt reduction suggests underlying financial challenges. The structure itself is neutral as it provides optionality without obligation, though dilution concerns exist for existing shareholders.