Cord Blood America, Inc. (http://www.cordblood-america.com) (OTC Bulletin Board: CBAI), the umbilical cord blood stem cell preservation company focused on bringing the life saving potential of stem cells, a biological insurance policy, to families nationwide and internationally, today said that it has had positive movement on two financial obligations that further strengthen its balance sheet.
The Company announced it has retired a $1.1 million debt obligation with JMJ Financial. "Eliminating debt and getting to cash flow positive are paramount to the long term success of CBAI," said Matthew Schissler, co-founder and CEO. "We are laser focused on these two goals."
Also, in a Form 8-K filing, Cord Blood America announced, after extensive negotiations, it has canceled a 36 million share Warrant Agreement valued at $1.8 million with Shelter Island Opportunity Fund, LLP, and replaced it with a Senior Secured Note in the principal amount of $1,590,400.
"This obligation was under the derivative liability line on our balance sheet, and as a result, now gets paid down over the next 12 months, making our balance sheet stronger. We took 36 million warrants off the table. The obligation in total was reduced by over $300,000 by our calculations. Interest is only for 6 months and payable in cash. We believe reducing the principal and interest obligation, removing warrant overhang, reducing the derivative liability over the next 12 months are all good for shareholders," said Matthew Schissler, co-founder and CEO. "It is important that our shareholders understand that we are continually working to improve our financial condition, as well as acquiring new businesses and diversifying our revenue stream."
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