CirTran Sells – and Leases Back – its HQ and Manufacturing Facility,
Achieving ‘Cost-Effective Financing for New and On-Going Projects'
SALT LAKE CITY, May 17, 2007 -- CirTran Corporation (OTCBB: CIRT), an international full-service contract manufacturer of IT, consumer and consumer electronics products, said today that it has sold its headquarters office and manufacturing facility – and leased it back – achieving what its chairman called “cost-effective financing for new and on-going projects.”
Iehab J. Hawatmeh, CirTran's founder, chairman and president, said the company's PFE Properties, LLC subsidiary sold the building for $2.5 million. PFE had purchased the building in April 2005.
Mr. Hawatmeh said that following payment of mortgage loan, taxes, fees, commissions and other expenses, CirTran netted $1.266 million at closing. He said that the company immediately signed a 10-year lease for the 40,000-square foot building, where it has been headquartered since 1996.
“By turning this real estate holding into cash, CirTran realized cost-effective financing for new and on-going projects,” he said. Currently, CirTran is set to launch The Real Deal Grill™, endorsed by four-time heavyweight champion Evander Holyfield, as well as other direct marketing/sold-on-TV projects and marketing campaigns in the U.S. and aboard.
“Cash is the lifeblood of business,” said Mr. Hawatmeh, “and the cost of that cash is paramount in implementing a successful business plan. By reaching into our own pockets – that is using the equity we have amassed in our building for working capital – CirTran has been able to obtain the cash needed at a far lower cost than if we had to go outside, mortgaging our future profits and even further diluting our shares.
Mr. Hawatmeh said that business is ”on an up-turn at CirTran,” and that the company is on-track to file its 10-Q for the first quarter of fiscal 2007, ended March 31, 2007, before the extended deadline.
About CirTran Corporation
Founded in 1993, CirTran Corporation (OTC BB: CIRT, www.CirTran.com ) is a premier international full-service contract manufacturer. Headquartered in Salt Lake City, its ISO 9001:2000-certified, non-captive 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. In 1998, CirTran acquired Racore Technology ( www.racore.com ), founded in 1983 and reorganized as Racore Technology Corporation in 1997. Continuing to grow, in 2004 CirTran formed CirTran-Asia as a high-volume manufacturing arm and wholly owned subsidiary with its principal office in ShenZhen, China. Today, CirTran-Asia operates in three primary business segments: high-volume electronics, fitness equipment, and household products manufacturing, focusing on the multi-billion-dollar direct response industry.
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