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.
About Cord Blood America
Cord Blood America (OTC Bulletin Board: CBAI) is the parent company of CorCell, which facilitates umbilical cord blood stem cell preservation for expectant parents and their children. Its mission is to be the most respected stem cell preservation company in the industry. Collected through a safe and non-invasive process, cord blood stem cells offer a powerful and potentially life-saving resource for treating a growing number of ailments, including cancer, leukemia, blood, and immune disorders. To find out more about Cord Blood America, Inc. (OTC Bulletin Board: CBAI), visit our website at www.corcell.com. For investor information, visit www.cordblood-america.com.
Some statements made in this press release are forward-looking statements, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. We use words such as "anticipate," "believe," "expect," "future," "intend," "plan," and similar expressions to identify forward-looking statements. These statements including those related to the growth of the industry, new stem cell treatments, and the Company's performance, are only predictions and are subject to certain risks, uncertainties and assumptions. Additional risks are identified and described in the Company's public filings with the Securities and Exchange Commission. Statements made herein are as of the date of this press release and should not be relied upon as of any subsequent date. The Company's past performance is not necessarily indicative of its future performance. The Company does not undertake, and the Company specifically disclaims any obligation to update any forward-looking statements to reflect occurrences, developments, events, or circumstances after the date of such statement.
CONTACT: Paul Knopick E & E Communications 949/707-5365 email@example.com
|SOURCE Cord Blood America, Inc.|
Copyright©2009 PR Newswire.
All rights reserved