Application For Registering Stem Cell Preservation Technologies, Inc. Dividend Shares To Be Filed Within One Week
CLEARWATER, Fla., May 24 /PRNewswire-FirstCall/ -- Daniel D. Richard, Founder and CEO of CRYO-CELL International, Inc. (Nasdaq: CCEL - News) announced that Stem Cell Preservation Technologies, Inc. ("SCPT") will file a Registration Statement within one week to the Securities and Exchange Commission. It will request the SEC register the shares given as a stock dividend by CRYO-CELL to its shareholders of record on 8/31/01.
(Photo: newscom.com
The Company's transfer agent is being instructed to deliver the SCPT dividend shares immediately following approval of the Registration Statement by the S.E.C.
According to Mr. Richard, the lengthy delay in filing the Registration Statement was caused by a number of unforeseen events. Just twelve days after the record date of 8/31/01, the tragic event in New York took place. This precipitated a steep decline in the stock market which impacted on raising capital in a private placement of SCPT stock being handled by Newbridge Securities Corporation, the placement agent.
On August 31, 2001, the Company had been advised that the private placement of $2,500,000 was contemplated to be completed by year-end. Obviously, this projection did not take into account the volatility of the stock market after the World Trade Center tragedy. It is commonly known the trepidation of investors led to a "drying up" of funds available for private placement capital investments. In addition, many shareholders saw the stock plummet, impacting their net worth. At the deadline of November 30, 2001, Newbridge Securities requested and received from Stem Cell Preservation Technologies, a 90-day extension to complete the private placement only to accredited investors. By February 28, 2002, the extended deadline, Newbridge had raised $518,000 through the sale of 259,000 shares of SCPT stock at $2.00 a share.
According to Mr. Richard, there were additional time delays because Stem Cell Preservation Technologies had purchased 2.1% of CRYO-CELL Italia and 1% of CRYO-CELL Europe for $300,000, which required the auditors to gather information from overseas. By the time Stem Cell Preservation Technologies was ready to file, they were delayed again because the financials were more than 134 days old which necessitated the auditors to extend the Company's financial statements until February 28, 2002.
On May 21, 2002, prior to the filing of the Registration Statement with S.E.C., Financial Holdings and Investment Co., parent company of Newbridge Securities, which had lent $500,000 to Stem Cell Preservation Technologies, converted that debt to equity at $2.00 per share, increasing the money it had raised for the Company to slightly over $1,000,000 in a negative, volatile market.
The accounting and legal work is completed and Stem Cell Preservation Technologies plans to file the Registration Statement within one week. As stated, the Company has instructed Continental Stock Transfer Co., the Transfer Agent, to deliver all dividend shares to CRYO-CELL stockholders of record as of the August 31, 2001. |
