Cord Blood America Files Preliminary Proxy Statement
, 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