Healthcare Industry News: cord blood
News Release - March 21, 2007
Bio Stem, Inc. to Obtain One of the Largest Stem Cell Inventories in the World Through MergerATLANTA, GA--(Healthcare Sales & Marketing Network)--Mar 21, 2007 -- Bio Stem, Inc. (OTC BB:BTEM.OB ) announced today that through their planned acquisition of Cryobanks International, Inc. (CII), BioStem will acquire nearly 9,000 internationally registered cord blood stem cell units presently being inventoried at their Altamore Springs, FL location. This represents one of the largest inventories of donated stem cell units in the world.
Upon the completion of the merger between Bio Stem, Inc. and Cryobanks International, Inc., Bio Stem, Inc. will indirectly own the inventory assets held by the Cryobanks. If and when cord blood units offered by Cryobanks are used for transplantation, Cryobanks receives $19,000 to $22,500 per unit in reimbursement.
Separately, Cryobanks has an inventory of approximately 3,000 additional stem cell units for research purposes that are available to major hospitals, universities and research centers for research designed to develop potential medical therapies. Cryobanks' corporate policy is to provide cord blood research units only for non-controversial and non-cosmetic purposes in keeping with Cryobanks' mission to participate in life enhancing and life saving, medically necessary therapies only. Cryobanks' inventory of stem cell units available for research is one of the largest such inventories in the world. These research units are not eligible for transplantation due to very strict government standards.
As described in previous releases by CII, over 35,000 American children and adults with life-threatening illnesses find themselves in need of a stem cell transplant each year, which may be accomplished through bone marrow transplantation or transplantation of stem cell units derived from cord blood (such as Cryobanks' inventory). That number grows to more than 150,000 annually worldwide. CII's aforementioned inventory stands as one of the largest inventories of cord blood stem cells in existence today.
Bio Stem, Inc. reports that the merger process with Cryobanks International, Inc. is progressing to its final stages as anticipated. Cryobanks previously announced a letter of intent to complete a $9.0 million financing, the closing of which is the last condition to be satisfied prior to moving forward with the merger process. The financing remains subject to completion of due diligence by the investment fund, and is at the funds sole discretion, and accordingly, the closing of neither the financing nor the merger can be assured. Additional releases capturing conclusive merger details are scheduled to be released in the near future.
Cryobanks International is located in Altamonte Springs, FL. The Company is a leader in the collection, processing, and banking of stem cells derived from the umbilical cord immediately after birth. The units of cord blood (CB) are processed and stored by the company for use in unrelated transplants (where the donor is a histocompatible match, but is anonymous and unrelated to the recipient) and for personal storage and use. In recent years, cord blood transplants (CBTs) have become widely recognized as a safe, effective, and in many ways preferable, alternative to bone marrow transplant (BMT). There is tremendous potential need for CBTs in the United States and worldwide. Cryobanks International is well poised to help meet that need, equipped with an inventory of over 9,000 cord blood units. For more information about Cryobanks International call 1-800-869-8608 or visit the website at www.cryo-intl.com.
Safe Harbor Statement
This press release contains "forward-looking statements" by the Company. These statements relate to future events or financial performance and transactions, and involve known and unknown risks, uncertainties and other factors that may cause actual results, levels of activity, performance or achievements, to be materially different from those contemplated by the forward-looking statements. The acquisition of Cryobanks International by Bio Stem, Inc. (OTC BB:BTEM.OB ), and the financing previously announced by Cryobanks, cannot be assured until such transactions are successfully closed. We undertake no ongoing obligation, other than that imposed by law, to update these statements.
Source: Bio Stem, Inc
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