By Sheri Kasprzak
New York, Sept. 13 - Cord Blood America, Inc. said it has raised $5 million in a private placement of convertible debentures.
The 12% debentures due in two years were purchased by Cornell Capital Partners, LP.
The debentures are convertible into common shares at $0.35.
At closing, the company received $3.5 million of the proceeds and the remaining $1.5 million will be funded two days after a registration statement is filed. The company must file a registration statement within 60 days.
Cornell also received warrants for 7 million shares, exercisable at $0.35 each, and warrants for 8,285,000 shares, exercisable at $0.40 each.
Based in Los Angeles, Cord Blood America is an umbilical cord stem cell preservation company.
| Issuer: | Cord Blood America, Inc.
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| Issue: | Convertible debentures
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| Amount: | $5 million
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| Maturity: | Two years
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| Coupon: | 12%
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| Price: | Par
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| Yield: | 12%
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| Conversion price: | $0.35
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| Warrants: | For 15.57 million shares
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| Warrant strike price: | $0.35 for 7,285,000 shares; $0.40 for 8,285,000 shares
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| Investor: | Cornell Capital Partners, LP
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| Settlement date: | Sept. 9
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| Stock price: | $0.33 at close Sept. 9
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