CBAI Stock Sees Price and Volume Increase
Cord Blood America, Inc. (CBAI) stock is enjoying a solid trading day with increased volume and a 40% gain in price. The Company announced today strong financial performance… so instead of rumors or promotions… the stock is actually going up on merit.
About the Company:
Cord Blood America is the parent company of CorCell, Companies, Inc. which facilitates umbilical cord blood stem cell preservation for expectant parents and their children. Its mission is to be the most respected stem cell preservation company in the industry. Collected through a safe and non-invasive process, cord blood stem cells offer a powerful and potentially life-saving resource for treating a growing number of ailments, including cancer, leukemia, blood, and immune disorders.
CBAI Recent News Announcements
The Company announced today that revenues for the second quarter of 2012 increased by 26 percent to $1.80 million compared to $1.43 million in the same period last year. Revenues for the six months ended June 30, 2012 increased 16 percent to $3.36 million compared to $2.89 million in the comparable period in 2011.
“The financial results we issued today are a clear departure from the past,” said CBAI President Joseph Vicente. “We outlined previously that our number one priority was to be self sufficient. We can proudly say that during the quarter, CBAI operated off its own cash. We remain committed to eliminating the debt, seeking profitable revenue opportunities and eliminating wasteful expenditures.”
Recent Financial Statement Highlights
Cash on Hand: $332,928
Shares Outstanding: 112,159,593
Revenue: $3,360,140 (6 Months Ended June 30, 2012)
In a transaction that closed on June 29, 2012, the Company entered into a Securities Purchase Agreement (the “Purchase Agreement”) with Tonaquint, Inc. (Tonaquint) a Utah corporation whereby the Company issued and sold, and the Tonaquint purchased a Secured Convertible Promissory Note of the Company in the principal amount of $1,252,000 (the “Company Note”).
The Company Note was issued June 27, 2012 and is due 20 calendar months after the issuance date. The Company Note has an interest rate of 6.0%, which would increase to a rate of 18.0% on the happening of certain Events of Default (defined in the Company Note), including but not limited to: failure to pay and the failure by the Company or its transfer agent to deliver Conversion Shares (defined in the Company Note) within 3 Trading Days of the Company’s receipt of a Conversion Notice (defined in the Company Note). The total amount funded in cash at closing was $1,120,000, representing the principal amount less an original issue discount of $112,000 and the payment of $20,000 to the Tonaquint to cover its fees.
Patent License Agreement:
PharmaStem Therapeutics holds certain patents relating to the storage, expansion and use of hematopoietic stem cells. In the past ten years, PharmaStem has commenced suit against numerous companies involved in cord blood collection and preservation alleging infringement of its patents. In October 2003, after a jury trial, judgment was entered against certain of our competitors and in favor of PharmaStem in one of those suits. In February 2004, PharmaStem commenced suit against Cord Partners and certain of its competitors alleging infringement of its patents. Management of Cord Partners determined to settle, rather than to litigate, this matter. As a result, PharmaStem and Cord Partners entered into a Patent License Agreement in March 2004. Pursuant to the Patent License Agreement, Cord Partners may, on a non-exclusive basis, collect, process and store cord blood utilizing PharmaStem technology and processes covered by its patents for so long as the patents may remain in effect. All of the patents expired in 2010. Cord Partners is obligated under the Patent License Agreement to pay royalties to PharmaStem of 15% of all revenues generated by Cord Partners from the collection and storage of cord blood on and after January 1, 2004. Other than royalties, no amount is payable by Cord Partners to PharmaStem. All litigation between the parties was dismissed and all prior claims were released. As of 2008, Cord has ceased paying all royalties to PharmaStem. The patents have been declared void under a final decision on appeal, and as such, there is no pending litigation in this matter. As of December 2011 and June 30, 2012, the Company included approximately $226,000 in accounts payable and $120,000 included in accrued expenses to account for this liability since 2008. This amount may be reversed in the future pending final decision on appeal.
Source: CBAI 10Q Filed 8-14-2012
Stock Chart and Trading Highlights
30 Day Percent Change: -3.76
30 Day Moving Average: 0.0136
30 Day Average Volume: 498,548
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