This is an email from Matt, the CEO. This was in response to my question about the S-1 (I asked him why they canceled the last one and reissued yesterday). Here is his response which of course is good news, so the price now is a steal:
The number of shares doubled BUT the stock strike price went up . Rather than register $2M of the optimus deal, we registered all $10M at a much higher strike price. it actually cuts dilution. The strike price in the old one was $0.0031. this strike price is 0.007. That's why we did it in the first place.
just think about the math for 1 second.
We registered $2M in the old statement (even though the Optimus deal was for $10M in cash/warrants). So we would have had to do 5 registration statements for this deal to get it fully registered, meaning we would have registered 5x the number of shares. We withdrew it, and registered the whole deal at a much higher price. So rather than 5x the shares registered in the first statement, our stock went up, so we registered it all for just 2x the shares.
Unfortunately, the shorters pray on fears like this and never do their due diligence. Like said, it was a non-event because we would have had to do 5 registration statements to cover the Optimus deal, but with the recent increase in price, we did it in just one statement.
I hope this helps.
All the Best,
Matthew L. Schissler
Chairman & CEO
Cord Blood America, Inc. (publicly traded on the NASDAQ OTCBB: Symbol CBAI)
888.882.CORD (2673)
for consumer information: www.corcell.com
for investor relations: www.cordblood-america.com
