As previously posted, with Red Oak's shares they have the votes to get the share increase if not today then after they call another meeting with a record date that would include the RO shares. Although I'm conceptually opposed to the share increase, I hope it's approved today so they don't have to incur the additional legal expense of holding another meeting--which they certainly will if the increase isn't approved today.
Having RO on board is clearly a big positive to keep management abuse/incompetence in check. However, I don't believe that RO will drive operating results up just because they're involved. They have no experience in the stem cell business which has become increasingly competitive with many new low cost providers. CBAI's primary cord blood business has been in decline recently, and I don't think RO will have a magic answer for that.
I don't expect the Q1 numbers due by May 15th to be good given all the expenses with the special meeting, fending off CCEL in court and closing the deal with RO. While RO has definitely stabilized the balance sheet and can be a backstop if additional cash infusions are needed, I don't think they'll turn operations around any time soon. It will be interesting to see how RO will be thinking about its investment after a few quarters of continuing mediocre operating results.
