InvestorsHub Logo
Followers 131
Posts 29747
Boards Moderated 0
Alias Born 12/21/2008

Re: up-down post# 61435

Thursday, 05/19/2011 11:11:26 PM

Thursday, May 19, 2011 11:11:26 PM

Post# of 105534
I'll make a couple points for those that still truly care.

1) I smell a lawsuit coming and it will be big

2) Don't forget Harry Reid is the Senator from Nevada

3) This is certainly costing Nevada jobs and we all know we need jobs

4) This is not happening just to us but to a lot of pinkies also. The small start-up companies that create new commerce

5) There is not one thing Matt could have done that he hasn't to get you your shares. Not one thing.

As a publicly traded small cap company, Cord Blood is reliant on a private entity, the Depository Trust Company (“DTC”), to permit its publicly traded shares to be eligible for electronic stock transactions. The DTC is the only entity of its kind and is essentially unregulated.

In December, 2010, the DTC unilaterally and without consultation with the Company, “chilled” all newly issued shares of the Company which were entitled to be freely traded in the market and whose holders expected to utilize the DTC Electronic Trading System. Under what the DTC calls a “chill”, DTC precludes shares which it has unilaterally “chilled” from utilizing its Electronic Stock Transfer System, thereby putting the holders of such “chilled shares” at extreme disadvantage in the trading market when they go to sell their shares. The “chill” applies to all shares newly issued or newly freed from private placement sales restrictions. The chill includes as to the Company, even shares for which an effective registration statement is in place, and shares for which valid legal opinions have been issued by seasoned securities law counsel opining as to share entitlement to free trading status under SEC Rule 144. The Chill fortunately does not apply to existing publicly traded shares of the Company which are out in the market place. However, the holders of these “chilled” shares of the Company are the key investment bankers whose funds have been supporting CBAI with capital lines to fund its expanding business. The Company has been forced to negotiate settlement agreements with its existing investment bankers to settle alleged breachs of contract as a result of this DTC chill and the unavailability of DTC electronic transfer for chilled Company shares. Such settlement agreements have already cost the Company approximately $820,000 in damages. The Company is endeavoring to maintain a dialogue with DTC over what the Company considers to be an unreasonable and illegal chill of its securities without cause or justification, in an effort to have this chill lifted. Whether the Company will be successful in obtaining relief from this chill is at this point uncertain. Continued implementation of the DTC chill will make it more difficult for the Company to obtain new capital which its needs to expand its business, and will likely increase claims for contract damages which the Company may have to pay as a result of its inability to deliver shares to investment bankers which are eligible for DTC electronic transfer.

http://www.sec.gov/Archives/edgar/data/1...
Join InvestorsHub

Join the InvestorsHub Community

Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.