SANTA MONICA, Calif., July 7 /PRNewswire-FirstCall/ -- Cord Blood America, Inc. (OTC Bulletin Board: CBAI), one of the largest umbilical cord blood stem cell preservation companies (http://www.cordblood-america.com) focused on bringing the life saving potential of stem cells to families nationwide and internationally, said today that it has entered into a definitive agreement with a health care fund under which Cord Blood America has secured a $7.5 million investment capital commitment, which may be drawn down through the sale of Series A Preferred Stock once a registration statement is filed and declared effective under the Securities Act of 1933.
Proceeds of the investment are anticipated to be used to fund new stem cell initiatives, potential acquisitions, and working capital needs. Matthew Schissler, founder and CEO, said the proceeds, once available and when coupled with internally generated revenues, should be sufficient to fund operations in the foreseeable future.
The Company may drawdown funds from the fund, based on terms and market conditions, through the issuance of Series A Preferred Stock and five-year Warrants exercisable for shares of common stock.
"This long term equity financing will allow for the company to grow and expand in ways we have not seen before, without the constant pressure of discounted debt financing. As stated throughout 2009, our three pillars of planned business success include organic growth, acquisitions and debt reduction. This financing will provide us the capital needed for the first two, without adding debt to the balance sheet."
"To have secured this financing in these difficult economic times is a major signal and endorsement of our business strategies and our management team," Mr. Schissler said.
|SOURCE Cord Blood America, Inc.|
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