Cord Blood America signs letter to buy Cryo-Cell Mexico
Las Vegas-based Cord Blood America signed a letter of intent to purchase Cryo-Cell Mexico for undisclosed terms.
Both companies store umbilical cord blood on the theory that science might some day discover cures for medical conditions using the stem cells contained in the blood. The practice has been controversial. Some people have likened it to an insurance policy on a child's health; others have decried a service that can cost thousands of dollars and produce no benefit.
Cord Blood has used stock deals previously to acquire operations in Germany and Argentina. Cryo-Cell now has 70,000 blood samples stored in supercooled vats.
In the nine months through Sept. 30, Cord Blood's revenues rose 5.9 percent to $2.7 million, but its net loss widened to $6 million from $5.9 million.
Cord Blood's stock closed Thursday at 0.41 cents per share on the Over-The-Counter Bulletin Board.
