LAS VEGAS, Feb. 10, 2011 /PRNewswire/ -- Cord Blood America, Inc. (http://www.cordblood-america.com) (OTC Bulletin Board: CBAI), the umbilical cord blood stem cell preservation company focused on bringing the life saving potential of stem cells to families nationwide and internationally, announced today a Special Meeting of its shareholders on April 21, 2011 to consider a proposal to effect a reverse stock split of one share for each 500 outstanding shares and then proportionally increase authorized shares.
"We are asking for our investors' support at this critical point in the Company's growth. Approval of this measure will assist in our efforts to make Cord Blood America a financially stronger company," Mr. Schissler said. "From 2007 to 2010, Cord Blood America was able to aggressively reduce its principal debt obligation by more than $8 million. This was a necessary and critical step and markedly improved our balance sheet. Please note the dramatic graph linked to this news release demonstrating the impact of our debt reduction. There are tremendous opportunities in our future, and we need to take this next step towards our path to profitability. We are asking our investors to help CBAI seize these opportunities."
"The Board of Directors believes that implementing a reverse stock split may increase the market price for CBAI common stock as fewer shares will be outstanding," said Matthew Schissler, CEO and co-founder. "It also believes that the reverse split may encourage future interest and trading in CBAI common stock."
"Additionally, our current cap structure limits strategic long term investment assisting in our acquisition program as well as other growth initiatives. We've had a great run on raising capital, but our future endeavors require a tighter capitalization," Mr. Schissler said. "We believe this may also assist the Company in its long term goal for placement on a more prestigious stock exchange."
Proxy information on voting is being distributed in a Schedule 14A filing available at www.sec.gov. Shareholders of record on March 10, 2011 may vote their proxy.
About Cord Blood America
Cord Blood America 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., visit our website at http://www.corcell.com/. For investor information, visit http://www.cordblood-america.com/.
Safe Harbor: This press release contains forward-looking statements. Forward-looking statements, which involve assumptions and describe our future plans, strategies and expectations, are generally identifiable by use of the words "may," "will," "should," "expect," "anticipate," "estimate," "believe," "intend" or "project" or the negative of these words or other variations on these words or comparable terminology. The reader is cautioned that such forward looking statements should not be construed as a guarantee or assurance of future performance or results. Actual events or results may differ materially from those discussed in forward-looking statements as a result of various factors. In light of these risks and uncertainties, there can be no assurance that the forward-looking statements contained herein will in fact occur. These forward-looking statements are based on current expectations, and the Company assumes no obligation to update this information. Readers are urged to carefully review and consider the various disclosures made by the Company in its Form 10-K and in the Company's other reports filed with the Securities and Exchange Commission that discuss certain of the risks and factors that may affect the Company and its business.
SOURCE Cord Blood America, Inc.