Cord Blood America (CBAI) volume skyrockets on acquisition news

Posted on: Monday, September 20th, 2010
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Cord Blood America, Inc. (OTCBB: CBAI) experienced explosive activity Monday, trading nearly 40 million shares after announcing this morning that the Company has acquired a 50.1 percent controlling interest in Biocordcell Argentina S.A. (BioCells, Inc.), one of South America’s largest stem cell companies. Cord  Blood America primarily focuses on the preservation of umbilical cord blood stem cell  in order to bring the life saving potential of stem cells, a biological insurance policy, to families nationwide and internationally.

Commanding a major part of the market in South America, BioCells is headquartered in Argentina with operations in Peru, Colombia, Bolivia, Panama and Puerto Rico, with recent expansion into Uruguay and Paraguay.  Purchase price for the profitable stem cell storage company, the second largest in Argentina, depends on achieving earn out targets for net profit over the next two years.

BioCells, Inc. reported 2009 annual revenues of $1.2 million (US), and operates twelve locations throughout Argentina, serving the nation of 40 million people that historically saves umbilical cord blood stem cells at a rate even higher than in the United States.

Co-founder and Chief Executive Officer of Cord Blood America, Matthew Schissler commented, “We expect revenues from BioCells to be approximately $1.7 million in 2010, with a profit of $150,000 (U.S.) before taxes. With this acquisition in South America, we now own a state-of-the-art large laboratory in Las Vegas, Nevada, a stem cell company in Germany with expansion plans throughout Europe, and we are partners in what could be the world’s largest stem cell storage facility in China.  We are quite proud of the accomplishments of Cord Blood America and we have no intention of slowing our aggressive growth strategy.”

Schissler concluded, “This is an historic day for Cord Blood America, our loyal investors and stakeholders.  We will not rest until we meet our goal of becoming the world’s premier stem cell storage company.”

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Category: Healthcare, OTCBB
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