You can't just value the cords in a vacuum. They wouldn't even be able to sell the cords as a standalone asset unless the loan was paid off first. If they were to do that the remaining company wouldn't be profitable as other revenues are declining. Realistically, any buyer will have to buy the whole company, assume (or pay off) the debt and then deal with the company's cost structure. In the case of CBR/AMAG there is significant revenue from upfront processing fees that boosted that valuation. They generate significant EBITDA because their SG&A as a percentage of revenue is much smaller than for CBAI, so CBR has real operating leverage. Also, AMAG saw great synergy in taking on CBR's salesforce to cross sell their drug to OBGYN's and pregnant moms. Finally, CBR is the market leader so that drove premium pricing. You can't just look at the number of cords because any buyer will have to assess all the costs/challenges of the company it's assuming. Even if a buyer decided to shut down the company except for the recurring revenues, the two top execs have golden parachutes and their would be an ongoing expense operating the freezers and billing the customers. You can't just import a CBR cord valuation and plug in here.
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