OLDSMAR, Fla., July 3, 2012 (GLOBE NEWSWIRE) -- via PRWEB - Cryo-Cell International, Inc. [OTCQB Symbol: CCEL] updated shareholders with results achieved by the current Board's leadership, which is being challenged for control of the company by previous Board members Ki Yong Choi and his brother-in-law.
In the last six months, the implementation of a national outside sales force resulted in increased referrals from obstetricians. In addition, product offerings were expanded and the corporate message was changed to emphasize Cryo-Cell's position as the industry founder. These changes required an investment which Cryo-Cell's Board believes will generate significant future value for the company's shareholders.
The current management team signed a contract with Cryo-Cell International's former affiliate, Cryo-Cell de Mexico (Mexico), whereby Mexico agreed to pay the Company nearly $1.9 million over a three year period.1 Under the previous Board, on which Choi served, Mexico terminated its contract with Cryo-Cell due to a breach by Cryo-Cell, potentially costing the company up to $4.8 million in future royalty payments.
In fiscal 2012, during its first year, the current leadership and Board negotiated the termination of some perpetual revenue sharing agreements (RSAs), a move that should save the company nearly $500,000 annually. RSAs were put in place to provide seed-stage financing and cost the company nearly $1.4 million in interest payments in 2011. The previous Board, on which Choi served, did not terminate any RSAs.
Cryo-Cell Chairman David Portnoy noted that he and Director Jonathan Wheeler M.D. purchased Cryo-Cell common stock in 2012 because they are confident about the company's future as a result of the Board's continuing efforts.
Shareholders are urged to vote for the company's slate of Board nominees by completing the white voting card. The shareholder meeting is set for July 10, 2012, in Oldsmar, Florida.
1 Cryo-Cell International Inc. Form 10-Q Financial Statement Footnote #5 filed with the Securities and Exchange Commission April 16, 2012.
About Cryo-Cell International, Inc.
Cryo-Cell International, Inc. was founded in 1989. In 1992, it became the first private cord blood bank in the world to separate and store stem cells. Today, nearly 500,000 parents worldwide trust Cryo-Cell to preserve their newborns' stem cells. Cryo-Cell's mission is to provide clients with state-of-the-art stem cell cryopreservation services and support the advancement of regenerative medicine. Cryo-Cell operates in a facility that is compliant with Good Manufacturing Practice and Good Tissue Practice (cGMP/cGTP). It is ISO 9001:2008 certified and accredited by the American Association of Blood Banks. Cryo-Cell is a publicly traded company, OTC:QB Markets Group Symbol: CCEL.
Forward-Looking Statements
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Cryo-Cell Leadership Sets the Record Straight on Efforts to Date