Cryo-Cell International, Inc. (OTCBB:CCEL) (the "Company"), one of the world's largest and most established family cord blood banks and global stem cell innovator, today confirmed that it has recently received additional inquiries from third parties interested in acquiring the Company.
The Cryo-Cell Board of Directors reviewed the unsolicited indications of interest and determined them to be substantially inadequate and not in the shareholders best interest. The Board reached the unanimous decision to reject the inquiries and reaffirmed that it is not interested in selling the Company at this time.
"The Board believes that the indications of interest dramatically undervalue the Company and its growth prospects," stated Mercedes A. Walton, Chairman and CEO of Cryo-Cell International. "Strategically and operationally, Cryo-Cell is perhaps at one of the strongest positions in our corporate history. The Board further believes the Company has vast significant future upside through its proprietary Celle technology, and potential opportunities through future product diversification, global expansion and possible strategic acquisitions that could positively impact both short and longer-term shareholder value."
"In view of the Company's current valuation, the Cryo-Cell Board, which includes some of the largest shareholders, understands the persistent interest expressed by the private equity group and other companies in the prospective acquisition of Cryo-Cell. Without exception, however, we affirmatively reiterate our position that this is not the right time to sell the Company," Walton concluded.
Cryo-Cell reported net income of $3.0 million year to date through third quarter of fiscal 2010, or $0.26 per basic common share and profitability in seven of the last eight quarters. As of August 31, 2010, the Company had $9.0 million in cash, cash equivalents, marketable securities and other investments. The Company had no long-term debt at the end of the quarter. On October 15, 2010, Cryo-Cell shares closed at $1.60 per share.
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