Today, the Board of Directors of Cryo-Cell International, Inc., one of the largest and most established family cord blood banks, confirmed that it has recently received inquiries from third parties interested in acquiring the company.
Upon reviewing the inquiries, the Board determined them to be inadequate and not in the shareholders’ best interest. They unanimously rejected the inquiries and reaffirmed that it is not interested in selling Cryo-Cell at this time.
Mercedes A. Walton, Chairman and CEO of Cryo-Cell International, stated that, “The Board believes that the indications of interest dramatically undervalue the Company and its growth prospects. Strategically and operationally, Cryo-Cell is perhaps at one of the strongest positions in our corporate history. The Board further believes the Company has vast significant future upside through its proprietary Celle technology, and potential opportunities through future product diversification, global expansion and possible strategic acquisitions that could positively impact both short and longer-term shareholder value.”
“In view of the Company’s current valuation, the Cryo-Cell Board, which includes some of the largest shareholders, understands the persistent interest expressed by the private equity group and other companies in the prospective acquisition of Cryo-Cell. Without exception, however, we affirmatively reiterate our position that this is not the right time to sell the Company,” Walton concluded.
Through the third quarter of fiscal 2010, Cryo-Cell reported net income of $3.0 million, or $0.26 per basic common share, and profitability in seven of the last eight quarters without any long-term debt responsibilities at the end of the most recently ended quarter. As of August 31, 2010, the company had $9.0 million in cash, cash equivalents, marketable securities and other investments.
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