CirTran Corporation Announces $10 Million Standby Equity Facility

Rhea-AI Summary

CirTran Corporation (OTCID: CIRX) entered a $10 million Standby Equity Purchase Agreement with YA II PN, Ltd. on Dec 30, 2025, giving the company the option to raise up to $10M in equity over a 24-month period.

The company controls timing and amount of any issuances, there are no minimum draws, and shares sold will be priced at the lowest volume-weighted average market price during the applicable pricing period. Proceeds, if any, are intended for working capital, general corporate purposes and debt reduction; 50% of net proceeds will be used to repay Tekfine, LLC per an existing agreement.

Positive

• Up to $10.0M available under 24-month facility
• Company retains full control over timing and amount of issuances
• 50% of net proceeds committed to reduce Tekfine debt

Negative

• Potential dilution from equity issuances priced at VWAP
• No minimum draw means access may not translate to immediate funding

News Market Reaction

+33.33%

1 alert

+33.33% News Effect

On the day this news was published, CIRX gained 33.33%, reflecting a significant positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

LAS VEGAS, Dec. 30, 2025 /PRNewswire/ -- CirTran Corporation (OTCID: CIRX) announced that it has entered into a Standby Equity Purchase Agreement with YA II PN, Ltd., providing the Company with the ability to raise up to $10 million in equity capital over a 24-month period, at the Company's discretion.

Under the agreement, CirTran has the right, but not the obligation, to sell shares of its common stock to YA from time to time, subject to customary conditions. There are no minimum draw requirements, and the Company maintains full control over the timing and amount of any issuances.

Any shares sold under the facility will be priced based at the lowest volume-weighted average market price of the Company's common stock during the applicable pricing period, as further described in the Company's Form 8-K. The agreement includes customary ownership limitations and restrictions on short selling by YA and its affiliates  .

The Company expects to use proceeds, if any, for working capital and general corporate purposes, including debt reduction. Pursuant to our agreement with Tekfine, LLC, we will be using 50% of net proceeds from the SEPA, if any, to reduce our indebtedness to Tekfine, LLC, which has agreed to refrain from selling shares received upon conversion of its notes during the term of the facility.

"This financing structure provides us with flexible access to capital while supporting our ongoing balance sheet improvement efforts," said Iehab J. Hawatmeh, Chief Executive Officer of CirTran Corporation.

Additional details regarding the agreement are included in the Company's Current Report on Form 8-K.

Forward-Looking Statements

This press release contains forward-looking statements subject to risks and uncertainties. Actual results may differ materially. CirTran undertakes no obligation to update these statements except as required by law.

About CirTran Corporation
Celebrating its 32nd anniversary, CirTran has evolved from its origins as an electronics contract manufacturer into a global producer and distributor of products serving the adult lifestyle and entertainment marketplace. Leveraging strategic partnerships and targeted initiatives, the Company continues to diversify its product portfolio and expand its international footprint. With a renewed focus on innovation and market responsiveness, CirTran is building a platform for sustainable growth in high-demand consumer segments.

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SOURCE CirTran Corporation

FAQ

What is the size and term of the CirTran (CIRX) standby equity facility announced Dec 30, 2025?

CirTran can raise up to $10 million over a 24-month period under the standby equity purchase agreement.

How will shares be priced under the CIRX standby equity agreement with YA II PN, Ltd.?

Shares sold will be priced at the lowest volume-weighted average market price during the applicable pricing period.

What will CirTran (CIRX) use proceeds from the $10M facility for?

Proceeds, if any, are expected to be used for working capital, general corporate purposes, and debt reduction.

How much of CIRX's net proceeds must be used to repay Tekfine, LLC?

50% of net proceeds from the standby equity facility, if any, will be used to reduce indebtedness to Tekfine, LLC.

Does CirTran (CIRX) have to draw funds under the YA II PN facility?

No; the company has the right but not the obligation to sell shares and there are no minimum draw requirements.

Are there investor protections or restrictions in the CIRX agreement with YA II PN, Ltd.?

The agreement includes customary ownership limitations and restrictions on short selling by YA and its affiliates.