SANTA MONICA, Calif., Feb. 25 /PRNewswire-FirstCall/ -- Cord Blood America, Inc. (OTC Bulletin Board: CBAI), the umbilical cord blood stem cell preservation company (http://www.cordblood-america.com) focused on bringing the life saving potential of stem cells to families nationwide and internationally, today announced an agreement with Shelter Island Opportunity Fund to restructure its current outstanding debt.
"The restructuring is a major step forward for Cord Blood America. With the signing of the agreement, Cord Blood America projects it will become cash flow positive for the first time in its history," said Matthew Schissler, Founder and CEO. "We anticipate formally being able to announce this when we file our quarterly numbers for period ending June 30, 2009."
"We have emphasized to our shareholders that reducing debt is a major focus in 2009," Mr. Schissler said. "This agreement provides us the opportunity to follow through on our commitment." The Company recently announced that since the beginning of 2009, it has reduced long term debt by more than $1 million.
"The storage of stem cells is a predictable, high margin revenue stream business with little bad debt," Mr. Schissler continued. "The loan originally helped CBAI to acquire a large customer base with the CorCell acquisition, giving us consistent cash flow. The principals of Shelter Island Opportunity Fund worked with us to restructure our debt, putting us in position to run as a cash flow positive organization. This is a gesture of true partnering with CBAI, while sharing the stem cell vision to become a globally dominant stem cell storage company."
Mr. Schissler also stressed that the entire stem cell sector and its investors await the announcement from the Obama Administration lifting the current ban on Federal funding for research on embryonic stem cell line
|SOURCE Cord Blood America, Inc.|
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