Attached files
file | filename |
---|---|
8-K - CURRENT REPORT - CBA Florida, Inc. | cbai_8k.htm |
Exhibit
99.1
CBA FLORIDA, INC. ANNOUNCES INITIAL CASH LIQUIDATING
DISTRIBUTION
$0.0062 per share to be paid on or about June 30, 2020
LAS VEGAS, NV / ACCESSWIRE / June 16, 2020 / CBA
Florida, Inc. (www.cbafloridainc.com)
(OTC PINK: CBAI) (“CBAI” or the “Company”)
today announced that its Board of Directors (the
“Board”) has approved an initial liquidating cash
distribution of $0.0062 per share. The distribution will be paid on or
about June 30, 2020. The Board has fixed the close of business
on June 26, 2020 as the record date for determining
shareholders entitled to receive the initial liquidating
distribution. The Company intends to file articles of
dissolution with the Florida Department of State Division of
Corporations on June 26, 2020, the record date for the initial
liquidating distribution. In connection with the effectiveness of
the articles of dissolution, CBAI will close its stock transfer
books and discontinue recording transfers of common stock,
effective as of 5:00 p.m. Eastern Time on June 26, 2020.
As a result, the common
stock, and stock certificates evidencing the shares of common
stock, will no longer be assignable or transferable on the
Company's books, other than transfers by will, intestate succession
or operation of law.
Subject to uncertainties inherent in the winding up of the Company,
CBAI may make one or more additional liquidating distributions.
However, no assurances can be made as to the ultimate amounts to be
distributed, if any, or the timing of any such
distributions.
David Sandberg, CBAI’s Chairman, stated, “After what
has been a long and active process since the Company’s
largest shareholder, Red Oak Partners, LLC (“Red Oak”),
invested in the Company in April 2015, the Board is pleased to
approve an initial liquidating distribution to shareholders. At the
time of Red Oak’s investment into the Company five years ago,
the Company was in a tenuous leverage position post litigation, a
competitor was seeking to take over the Company, EBITDA was set to
decline dramatically as customers discontinued orders for what was
then a profitable tissue business, and the core cord blood
processing and storage business was in near run-off with minimal
new customer growth. Facing the prospects of negative EBITDA and
cash flow, the Board quickly reduced operating costs including the
outsourcing of all lab and storage functions for new customers and
initiated a process to monetize assets in order to maximize
shareholder value. While we attempted to sell the company via a
stock purchase deal, the best value for shareholders came from the
sale of substantially all of the Company’s assets, which we
closed on over two years ago. Subsequent to the close of the asset
sale, the Board attempted to sell the remaining shell of the
Company with its cash (and minimal usable net operating losses),
but we were unable to execute a transaction that provided more
value to shareholders than a liquidation and dissolution process.
Accordingly, we intend to file articles of dissolution,
substantially in the form as were recently approved by our
shareholders. I would personally like to thank Anthony Snow for his
work as President of CBAI, and to thank our Board, employees, and
advisors for their hard work that has enabled this positive outcome
for shareholders. This initial per-share liquidating distribution
amount is more than triple the share price where Red Oak (and
others who invested at that time) invested in the Company, and
frankly represents a successful outcome for shareholders versus
what we believe the outcome would have been had Red Oak not
invested in the Company. Although we are hopeful that there will be
additional liquidating distributions issued going forward, the
Board cannot commit to this until the dissolution process has more
fully run its course.”
About CBA Florida, Inc.
CBA
Florida, Inc., formerly Cord Blood America, Inc., does not
currently have any active business operations and consists of the
cash, receivables, and liabilities remaining post-closing of the
sale of substantially all of the Company’s
assets.
Forward-Looking Statements
Some
statements made in this press release are forward-looking
statements. The Company uses words such as
“anticipate,” “believe,”
“expect,” “future,” “intend,”
“plan,” and similar expressions to identify
forward-looking statements. These statements are based largely on
the Company’s expectations and are subject to a number of
risks and uncertainties, certain of which are beyond the
Company’s control. Actual results could differ materially
from these forward-looking statements as a result of, among other
factors, risks and uncertainties associated with its continuing
limited operations, as well as liabilities and third-party claims
currently existing or which may arise in the future. The Company
encourages you to review other factors that may affect its future
results in its filings with the Securities and Exchange Commission.
In light of these risks and uncertainties, there can be no
assurance that the forward-looking information contained in this
press release will in fact occur. The Company does not undertake,
and the Company specifically disclaims any obligation to update any
forward-looking statements to reflect occurrences, developments,
events, or circumstances after the date of such
statement.
Investor Contact:
Anthony Snow
asnow@cbafloridainc.com