Cryo Cell International Inc (CCEL)

[locksflooring]

Ki Yong Choi Warns The Portnoys To Stop Deceiving Stockholders = Get them Choi. Things are heating up in CCEL land. VIVA LA MEXICO!Management is misrepresenting information about funds set aside for a potential severance payment for the former CEO. The co-CEO states that, when I was a Board member, I "voted to approve a wire transfer of $2.5 million into a trust" for the former CEO. The Board did approve money being set aside for potential severance payments to the former CEO and others resulting from employment terminations that occurred after last year's proxy contest. These funds are included on the company's balance sheet as restricted cash.

Management demonstrates a low threshold for achievement. In describing his interactions with Cryo-Cell de Mexico, the co-CEO states that their negotiation with Cryo-Cell's largest affiliate resulted in a loss of more than 60% of the revenue that it was owed. David Portnoy seems to call this a victory for the management team. This does not seem like something management should tout.

Co-CEOs marketing strategies show no evidence of progress. The co-CEOs describe sales and marketing alternatives to grow the business. The co-CEO seems to be touting these as victories in stating they are "Using Marketing Dollars Effectively." While these initiatives are certainly increasing expenses in Sales & Marketing, by a whopping 51%, revenue decreased 7% in the last fiscal quarter compared to the year before[1]. This is a considerable increase in Sales and Marketing spending – how long should stockholders wait for these efforts to bear fruit?