Cord Blood America announced today that it has completed a private placement with institutional investors. As terms of the transaction, the institutional investors will receive 0% Senior Convertible Notes at an original issue discount of 20%. Midtown Partners & Co., LLC, was instrumental in completing the financing.
The CEO, Matthew Schissler, stated, “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. 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. We are looking forward to keeping our shareholders up-to-date on our achievements now and in the future,” he added.
The company also acquired a $1 acquisition line of credit to be used only for acquisition and asset purchases. The purchase price for the Convertible Notes consisted of $1 million cash and the cancellation of $544,000 worth of accumulated interest. The Convertible Notes are subordinate to all outstanding debt, but will have precedence over future debt and are convertible into common stock at $0.03 per share. The Company also issued warrants to purchase an additional 48,277,655 shares of its common stock exercisable at $0.037 per share.
Let us hear your thoughts: Cord Blood America Inc. Message Board