ord Blood America, Inc. (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, announced today that it has completed a private placement with institutional investors of 0% Senior Convertible Notes, at an original issue discount of 20%, in an aggregate principal amount of $1.9 Million. Midtown Partners & Co., LLC, was the placement agent in the transaction.
In addition, the Company has also secured a $1 million acquisition line of credit, to be used strictly for acquisition and asset purchases.
"We are enormously pleased by these financings as they allow for us to continue our strategic organic growth focused on exclusive relationships with approved insurance providers," said Matthew Schissler, CEO. "The financings also allow Cord Blood America to move forward with its aggressive accretive acquisition program."
"This is a major milestone for Cord Blood America," Mr. Schissler said. "We are looking forward to keeping our shareholders up-to-date on our achievements now and in the future."
The purchase price for the Convertible Notes consisted of $1M cash and the cancellation of $544K of accrued interest currently due. The Convertible Notes are junior to all outstanding debt, but will have a priority over future debt and are convertible into common stock at $0.03 per share. Pursuant to this transaction, the Company also issued warrants to purchase an additional 48,277,655 shares of its common stock exercisable at $0.037 per share. The details of the financing are contained in the filing with the Securities & Exchange Commission on Form 8-K, which will be available at http://www.sec.gov/.
The securities issued by Cord Blood have not been registered under the Securities Act of 1933 or any state securities laws. Therefore, such securities may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act of 1933 and any applicable state securities laws. This press release does not constitute an offer to purchase any securities or a solicitation of an offer to sell any securities.
About Midtown Partners & Co., LLC
Originally founded in May 2000, Midtown Partners & Co., LLC is an investment bank focused on private placement investment banking opportunities. The investment banking group at Midtown Partners & Co., LLC was founded on the premise that client relationships and industry focus are keys to the success of emerging growth companies. Such companies require investment banking services from a firm with a unique understanding of the marketplace and the nature of these transactions. Midtown Partners was the 5th leading U.S. placement agent in number of closed PIPE transactions for 2006 (source Placementtracker.com). Additional information can be found at http://www.midtownpartners.com/.
About Cord Blood America, Inc.
Cord Blood America (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. (BULLETIN BOARD: CBAI) , visit our website at http://www.corcell.com/. For investor information, visit http://www.cordblood-america.com/.