LAS VEGAS, Jan. 11 /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, a biological insurance policy, to families nationwide and internationally, today announced that it has completed capital raises over the last 18 months totaling $16.8 million, including a new $3 million financing focused on avoiding dilution and being investor-friendly as CBAI puts in place its business strategy for success in 2010.
Specifically, CBAI raised $4M in a short term equity line in July 2008, $2.3M in convertible debt in April 2009, $7.5M in long term equity in June 2009 and entered into agreements for $3M in January 2010 targeted specifically for acquisitions.
In discussing the different financings, CEO and Founder Matthew Schissler said, "Each financing has its own purpose. Organic growth strategies, targeting a specific acquisition, or expanding our revenue base, will determine the proper financing to apply in any one scenario. To the point and as an example, up until today, CBAI did not have any financings at our fingertips which allowed to use cash as payment. They were all share based."
"However, that changed today. The latest financing is extremely vital because it allows for cash payments. This type of financing targets acquisitions, specifically ones that have cash flow. It is beneficial for shareholders in that it allows payment for all or at least part of the financing back in cash."
Mr. Schissler continued, "Another critical point is that each of the said financings are, in effect, credit lines, which are opportunistic for CBAI. They are tapped by CBAI only if and when we choose to utilize them. This differs greatly from our previous financings which were funded with large sums relatively immediately, creating debt and long term obligations on the balance sheet and overhang in the market. We spent all of 2009 cleaning that up and wish not to repeat that process ever again. With the new financing, we only access the capital at our request."
To be noted, in the last 18 months, CBAI has received approximately $2.3M of the $16.8M total, mostly used for the build-out of their new state-of-the art laboratory, leaving $14.5M available for future opportunities.
"We believe all the necessary financial tools are in place to execute our three pillars of success in 2010: organic growth, acquisitions and diversification of revenue streams," said Mr. Schissler.
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.
CONTACT: Paul Knopick E & E Communications 949/707-5365 email@example.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.
SOURCE Cord Blood America, Inc.