Cord Blood America Secures $200,000 for Potential Acquisition
News Apr 13, 2007
Cord Blood America, Inc. has announced that it has secured $200,000 in capital which will allow it to complete a potential acquisition for which a Letter of Intent has been issued. The money is provided by a leading institutional investment firm from New York City.
"The funding is a debt placement, which we chose for similar reasons to our previous debt placements. Most importantly, it minimizes dilution, protecting our current shareholders," said Matthew Schissler, CEO, Cord Blood America.
"We are a growth-oriented company and there will be times when we need to raise capital using equity. Once again, this was not one of those times. This transaction protects that option for the Company and its shareholders," he continued.
The debt will be serviced primarily with cash flow from the still to be named acquisition.
Mr. Schissler said completion of the debt placement prior to completing the acquisition is "extremely important to principals of selling companies." He explained that CBAI can continue to attract new acquisitions because of the Company's ability to secure capital prior to closing.
"It's easier to make acquisitions when you have the financing already secured," Mr. Schissler said.