LAS VEGAS, July 13, 2012 /PRNewswire/ -- Cord Blood America, Inc. (www.cordblood-america.com) (OTC-BB: CBAI), the umbilical cord blood stem cell preservation company focused on bringing the life saving potential of stem cells to families nationwide and internationally, today announced that it has filed a Preliminary Proxy Statement, Schedule 14A, with the U.S. Securities & Exchange Commission (www.sec.gov).
As detailed in its July 9, 2012 press release, the successful negotiation of the debt restructuring and the BioCells settlement agreement has positioned CBAI to eliminate its remaining debt obligations. The majority of the amount of common stock sought in the increase stems directly from the recently executed Tonaquint note and the legacy St. George note. For Tonaquint, CBAI is contractually obligated to reserve 225,000,000 shares, which is approximately two times the debt coverage of the note. With St. George, the note requires a similar reserve equal to at least 200% of the number of shares of common stock that would be needed to fully convert the note and associated warrants. The balance of the increase is for the Company's debt obligations with Tangiers Investors, LP, along with any unanticipated contingencies. "These share reserve requirements exist as a safeguard, not a commitment to issue the entire reserve, and are commonly found in convertible debt instruments. These requirements are just another reason we wanted to terminate any additional requirements for funding under such arrangements and end this cycle," said newly appointed President, Joseph Vicente.
"We again ask you our shareholders to support management in this measure. We believe in eight short weeks we have demonstrated the seriousness in which we view dilution and have delivered results against its furtherance. We continue to be steadfast in our vision that a company with no long term debt and the ability to operate on its own cash has substantial opportunities for growth and stock appreciation. We look forward to releasing our operational results in upcoming quarters," Mr. Vicente said.
About Cord Blood America
Cord Blood America, Inc. is the parent company of CorCell Companies, Inc., 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. and CorCell Companies, Inc., visit our websites: http://www.corcell.com/ for customer information and http://www.cordblood-america.com/ for investor information.
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 Cord Blood America'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
SOURCE Cord Blood America, Inc.