CBAI acquires assets of NeoCells for $320,000

Jun 17 2011

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 to families nationwide and internationally, is pleased to announce that it has acquired the assets of NeoCells, a subsidiary of ViviCells International, Inc., Evanston, Illinois, through a foreclosure procedure at a purchase price of $320,000.

An excerpt from the filing states, "The Company proceeded …. to foreclose against all assets of NeoCells. At the public disposition of all property owned by NeoCells, the Company as a secured creditor bid $320,000 in offset debt, and acquired all right, title and interest in said property free and clear of any liens, security interests and encumbrances which are junior and subordinate to the Company's security interest as a secured creditor."

"This is good news for our growth. CBAI has been highly acquisitive for a distinct reason. In today's environment, with lots of companies struggling, we have found acquiring samples to be a very effective means to improve company gross margins," Mr. Schissler said.

"With this foreclosure, Cord Blood America has now added more than 2,700 customers this year through acquisition alone, not counting organic growth, including the previous purchase in February of all the umbilical cord blood samples from Reproductive Genetics Institute, Inc., also in Illinois," Mr. Schissler said. "All customers have had their umbilical cord blood stem cells, which were saved at birth, moved to our Las Vegas headquarters," said Matthew Schissler, co-founder and CEO.  "We've assumed the cryogenic storage of these samples, and billings from their contracts. We are excited to welcome the NeoCells customers to the Cord Blood America family."

SOURCE Cord Blood America, Inc.