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Cryo-Cell International rejects private equity bid, share price soars 56%

Published: 09:00 14 Sep 2010 AEST

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Cryo-Cell International (OTCBB: CCEL), a company that helps families preserve umbilical cord blood stem cells, announced today that it received an offer from DW Healthcare Partners, a  private equity firm,  to acquire all the company’s outstanding shares for $1.50 per share in cash.  The offer price represents a 67% premium to the company’s Friday closing stock price.


Stem cells are a type of undifferentiated cell that has the potential to change into cells with specialized functions.  Because of their plasticity, stem cells are believed to have a wide range of applications in treating various diseases. 


The company’s stock price has soared 55.56% to trade at $1.40 as of 1:39 pm.  


After meeting last week, Cryo-Cell’s board of directors unanimously rejected the offer, saying the bid significantly undervalued the company and its growth prospects.


“Without exception, each member of the Cryo-Cell board believes that this is not the right time to sell the Company,” said Mercedes A. Walton, Chairman & CEO of Cryo-Cell.


“The board includes some of the company’s largest independent shareholders. We are unanimous and resolute in our commitment to maximize Cryo-Cell’s future value for all of our shareholders.”


Company insiders own approximately 27% of the company’s outstanding shares.


Last month, the company announced that Morgan Joseph’s Healthcare


Investment Group was retained as the company’s exclusive financial advisors and investment bankers to evaluate potential acquisitions to facilitate growth.


In addition to providing umbilical cord blood stem cell preservation services, Cryo-Cell also offers services that allow women to preserve menstrual stem cells.  The company, headquartered in Oldsmar, Florida, has nearly 215,000 clients worldwide, in addition to twenty-one global license affiliates.

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