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CirTran Relieved of $1.4 Million in Royalties and Debt Obligations Involving Playboy Energy Drink in

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By Business Wirevia The Motley Fool

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CirTran Relieved of $1.4 Million in Royalties and Debt Obligations Involving Playboy Energy Drink in Settlement

SALT LAKE CITY–(BUSINESS WIRE)– CirTran Corporation (OTCBB: CIRC), an international contract manufacturer of energy beverages and consumer products, said today that it has been relieved of approximately $1.4 million in accrued royalties and other debt obligations claimed by former Play Beverages‘ partners involving Playboy Energy Drink line after a settlement. This settlement will improve CirTran’s bottom line by that amount.

CirTran President Iehab J. Hawatmeh said “the Play Beverages Parties,” including Bev Group, LLC, CirTran Beverage Corporation, CirTran Corporation, Fadi Nora and himself, settled with “the LIB-MP parties,” including LIB-MP Beverage, LLC, American Sales and Merchandising, LLC, and individuals Warner K. Depuy, Michael Liberty and Jeffrey Pollack.

Under the agreement, the parties exchanged mutual general releases without payment by any party of any amounts to any other. Accordingly, Play Beverages Parties was relieved of the $1,375,618 payment obligation to the LIB-MP parties. .

Mr. Hawatmeh said that “the LIB-MP parties” had filed the petition that forced PlayBev into involuntary bankruptcy, but in December, 2012, the U.S. Bankruptcy Court (District of Utah) vacated the bankruptcy, freeing PlayBev to take legal actions to protect the product license granted for its Playboy Energy Drink.

That was the first “three consecutive major legal victories for ‘the Play Beverages Parties’,” he said, setting the stage for this settlement. “Now we can go back to work to regain the momentum we had in establishing Playboy Energy Drink a ‘player’ in the international marketplace.”

Introduced in 2008, Playboy Energy Drink is manufactured and distributed exclusively by CirTran Beverage Corporation, a wholly owned subsidiary of CirTran Corporation under a product license from Playboy Enterprises to Play Beverages. It is currently available in more than 20 countries.


About CirTran Corporation

Marking its 20th year in business, CirTran Corporation (www.cirtran.com) has evolved from its roots as an international, full-service contract manufacturer. From its headquarters in Salt Lake City, where it operates, along with its Racore Technology (www.racore.com) electronics manufacturing subsidiary, from an ISO 9001:2000-certified facility, CirTran has grown in scope and geography. CirTran’s operations include: CirTran-Asia, a subsidiary with principal offices in ShenZhen, China, which manufactures high-volume electronics, fitness equipment, and household products for the multi-billion-dollar direct response industry; …read more

Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

CirTran Sets New Repayment Schedule and Converts Debt-to-Equity

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By Business Wirevia The Motley Fool

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CirTran Sets New Repayment Schedule and Converts Debt-to-Equity

SALT LAKE CITY–(BUSINESS WIRE)– CirTran Corporation (OTCBB: CIRC), an international contract manufacturer of energy beverages and other consumer products, announced it has entered into a new agreement that converts debt to equity, which included as an exhibit to its Current Report on Form 8-K filed yesterday with the Securities and Exchange Commission.

Iehab J. Hawatmeh, president of CirTran, said the agreement “continues to stabilize the company and better position it to move forward.

“Since December,” he said, “CirTran has benefitted from three favorable court rulings involving Playboy Energy Drink, manufactured and distributed exclusively by CirTran Beverage Corporation under a product license from Playboy Enterprises to Play Beverages. Now, with this agreement, we have even more positive news exemplified by a display of confidence in the company from a leading venture capital firm.”

Mr. Hawatmeh said the agreement with YA Global Investments, L.P. of Jersey City, N.J., includes a loan repayment schedule of $100,000 per month, commencing immediately and extending through March, 2015. CirTran owes YA Global an aggregate of approximately $4.0 million of principal and accrued interest on outstanding convertible debentures issued to YA Global’s predecessor-in-interest in 2005 and 2006, and subsequently amended, restated and consolidated.

Between December 27, 2012, and March 15, 2013, YA Global converted an aggregate of $254,036 in amounts due under such convertible debentures to 297,459,076 shares of common stock, with the conversion price set forth in the debentures. Between December 20, 2012, and March 22, 2013, CirTran issued an aggregate of 504,000,000 shares for conversion of debt and services, aggregating $227,500. These issuances included Mr. Hawatmeh ($45,000 converted to 150,000,000 restricted shares) and directors Fadi Nora and Kathryn Hollinger ($45,000 and $7,500 converted to 150,000,000 and 25,000,000 restricted shares, respectively). And between December 20, 2012, and February 28, 2013, CirTran also issued (under a registration statement on Form S-8) an aggregate of 159,000,000 shares to unaffiliated employees and contractors in consideration for services rendered.


About CirTran Corporation

Marking its 20th year in business in 2013, CirTran Corporation (www.cirtran.com) has evolved from its roots as an international, full-service contract manufacturer. From its headquarters in Salt Lake City, Utah, where it operates, along with its Racore Technology (www.racore.com) electronics manufacturing subsidiary, from an ISO 9001:2000-certified facility, CirTran has grown …read more
Source: FULL ARTICLE at DailyFinance