I don't have any direct knowledge that a CCEL deal is in the works.
I probably should have qualified my comment more. I apoligize for the confusion.
I do believe a deal is a very real possibility.
CBAI has been mostly silent since the release that they are exploring "strategic alternatives". Recent activities by CCEL, obviously indicate they are going thru a major transition. The CMEX deal or the other 2 LOI's havent closed. At this point, the logical move would be to close one of them, even at a higher than intended purchase price, as it would bring $ cash flow positive, allowing operational share financing to atleast be suspended. The delay in their closure, may suggest a bigger fish has come around, and the intended financing plan for the LOIs has been redirected toward this fish. This would likely occur as a merger, using an Accretitive Dilution strategy.
If this is occurring the most important isssue for CBAI investors is the share ratio.
With the likely goal to end of with a 100 million share company, which was the desired ultimate o/s under the 500/1 r/s proposal. 13-o/s 80 mill a/s . It ended up (obviously) 67 mil or so o/s and approx 150 mill a/s. for 250mill total. Right now there is atleast 109 mill o/s .If the shares are used to the end - a correction likely would be necessary as CBAI will be share heavy for revenue- and projected growth. a combined ccell/cbai could be healthy at 150mill o/s . currently ccell has about 13mill o/s and are in the middle of a mill share buyback.
Ccel has about $7mill in the bank. Plenty of cash flow positive. A combined company likely could finalize the LOIs pretty quickly. The CMEX LOI might become irrelevant. A combined Co. may also be in a position to aquire more than if seperate. Remember, the industry is still very much consolidating, and the name of the game is still inventory. One of the pillars of CEO game plan is to purchase this inventory at a discount from struggiling companies. As the industry develops, this inventory has potential to gain in value. We saw an example of this with the Illinois aquisitions, garnered thru a bankruptcy proceeding.
What interest would CCEL have in a merger?
It would seem CBAI would be a natural fit. They are both in places the other is not. One has major facilities in western usa the other in eastern usa. An affiliates in many different as well as in the same market. Both companies can have expansion and consolidation simultaneously. Could become larger and more efficent at the same time.
Ccel just fired its CEO - for apparently seems incompetance. It took an investor revolt to do it.
Two brother investors David and Mark Portnoy ~ financiers by trade~ are now running Ccel. How long do you think this is going to last?
Their probably qualified short term, but long term they will have to bring in a CEO that is competent within the industry." What better person(s) than the CEO who tried to buy them twice a year or so ago.? With the understanding Mrs. CEO is an very intrical part of the CBAI management group. Matt, as he would tell you focuses on the financing.
The "golden parachute" CEO recently awarded himself that some elude to may play into this type scenario. The Portnoy's of CCEL are financers, so there would be no need to add a third.
The golden parachute may be " a cheaper to keep em move" in a merger negotiation, assuring CEO /wife come as a package.
Both companies definately need to get off the OTB. This may be the best opprotunity for both to do it. CBAI for sure doesnt seem it is going to be able to have the correct balance of revenue v shares to sustain the required pps to uplist. A merger may create the pps conditions enabling a very important uplisting. Money will always be expensive and the pps always unstable until CBAI un-pinks.
IDK if the a MAJOR DEAL with Ccel is in the works, or is even being thought of today. I do know they tried to buy them twice within the past 2 years, as this came out in the CMEX court case. Below is some info and links that makes me pay attention to a possible CCEL scenario. Investors may do well to pay attention to this also.
CEO knows he cant come back and ask for more shares, and the math doesnt add up to success with the current organic growth rate vs the share burn rate. CEO is a Very Smart man, he very clearly knows this current strategy can last long and wont work. This is a stop gap measure before the fireworks.. Something BIG has to happen SOON.
I hope there is at least a hint in the filing. If the share # 's are high and the revenue is good but not Excellent the pps will sink like a rock. If revenues are Excellent and the shares are under 150mill, may get a nice, at least temporary rise.
I believe the "knock me down with a feather moment" CEO eluded to some time ago, was the attempted CCEl purchases. That "moment" may have come around again(or never really left- just got delayed).
If so, depending on the terms(this is where investors CEO trust level comes in), if your in when it happens, your investment may finally WIN!
I think the CEO is a Very Smart guy, and very much willing to explain himself if an investor takes the effort to call him. I think he is going to put it together, and I am confident the technology is here to stay. Thats why I'm all in.
AIMHO GLTY/A ------------------------------------------------------------------------------------------------------------------------------------ -"Cryo-Cell fiscal 2011 results are indicative of a company that is in the process of making many organizational and operational improvements," stated David Portnoy, Cryo-Cell's Chairman and Co-CEO. "Although the implementation of these steps is still in the early stages, we are encouraged in our belief that our goals will be achieved." Mark Portnoy, Cryo-Cell's Co-CEO, added, "With the transition of the new Board of Directors last year, the Company made significant changes over the last six months. We are continuing to improve the IT systems and website, and have embarked on a major rebranding/marketing effort. Although these efforts have increased our expenses, we have balanced that somewhat with cost reductions. We feel these are appropriate and necessary investments for the Company's future. In addition, the Company has implemented its previously announced stock repurchase plan, and to date, has repurchased 415,117 shares on the open market and in private transactions." http://www.marketwatch.com/story/cryo-cell-reports-financial-results-for-fiscal-2011-2012-02-29
"At first, we were just investors," said Mark Portnoy, recalling how he and his brother had watched the stock market from a very early age. But now that they are running Cryo-Cell and have become immersed in the science and medical potential of stem cells, "it feels good to do good," he said. They've learned that stem cell transplants are known and accepted treatments for more than 80 diseases. They've come to appreciate the value of an initiative Cryo-Cell launched in 2007, to preserve menstrual stem cells which are being studied as potential treatments for diabetes, breast cancer, heart disease, stroke and autoimmune diseases. David Portnoy now sees Cryo-Cell as a company at the forefront of regenerative medicine
Portnoy, who waged an expensive battle this year as well as in 2007 to gain control of the board, and four others on his slate were elected at the company’s annual shareholder’s meeting on Aug. 25. The new directors are Portnoy, who heads Focus Financial Corp., an investment banking and venture capital firm in Bal Habour; his brother, Mark Portnoy, a former Wall Street trader; Dr. Jonathan Wheeler, an obstetrician/gynecologist; George Gaines, founder and owner of Orrington Advisors, a business consulting firm; and Harold Berger, a certified public accountant. http://www.bizjournals.com/tampabay/news/2011/08/31/portnoy-group-wins-board-cryo-cell.htm ===============================================================================
September 13, 2010 8:04 AM EDT Cryo-Cell (Nasdaq: CCEL) has just confirmed a receipt of an unsolicited buyout proposal at $1.50/share from a private equity group. The company has rejected the offer, saying that it is not for sale at this time.
=== Interesting deal here. On August 23, 2010 CCEL announced that they had retained Morgan Joseph as their investment bank to “explore strategic alternatives”. On September 23, 2010, they announced that they had received an unsolicited bid from DW Healthcare Partners, a private equity firm for $1.50 a share. This offer was promptly rejected as inadequate. We agree. Out valuation is $3.42 per share.
News 
Market Data 
Discover 
AI
