A Medical Device Daily

Cord Blood America (Los Angeles), an umbilical cord blood stem cell preservation company, reported it has completed a private placement with institutional investors of 0% senior convertible notes, at an original issue discount of 20%, in the amount of $1.9 million.

Midtown Partners & Co. was the placement agent in the transaction.

In addition, Cord Blood has also secured a $1 million acquisition line of credit, to be used strictly for acquisition and asset purchases.

“We are enormously pleased by these financings as they allow for us to continue our strategic organic growth focused on exclusive relationships with approved insurance providers,” said Matthew Schissler, CEO. “The financings also allow Cord Blood America to move forward with its aggressive accretive acquisition program.”

The purchase price for the convertible notes consisted of $1 million cash and the cancellation of $544,000 of accrued interest currently due. The convertible notes are junior to all outstanding debt, but will have a priority over future debt and are convertible into common stock at $0.03 a share.

Cord Blood also issued warrants to purchase another 48,277,655 shares of its common stock exercisable at $0.037 a share.

In other financing news: Ann Arbor SPARK (Ann Arbor, Michigan) reported that it has been awarded $3.75 million by the state of Michigan through the 21st Century Jobs Fund. The Company Formation and Growth Fund, a State of Michigan loan fund with a low interest rate, is intended to encourage the retention of the assets and talent of Pfizer (New York) in the region.

Earlier this year, Pfizer said it would cut 2,100 jobs and close its 177-acre Ann Arbor R&D facility by late 2008 as part of a company-wide plan to cut 10,000 jobs.

“The Company Formation and Growth Fund provides the essential capital for jobs creation as well as support for start-up companies that can retain displaced Pfizer talent in our region,” said Michael A. Finney, Ann Arbor SPARK CEO. “Providing an economic catalyst for entrepreneurial growth is vital to our region’s success; the Company Formation and Growth Fund’s focus on creating new jobs for talented biotech professionals is an exciting opportunity.”

Ann Arbor SPARK said it has distributed $1.5 million of the funds it received to five life science companies in the region, including Phrixus Pharmaceuticals (Ann Arbor); TransPharm Preclinical Solutions (Jackson); SensiGen (Ann Arbor); Lycera (Ann Arbor); and Integrated Nonclinical Development Solutions (Ann Arbor).

The first round of companies receiving Company Formation and Growth loans currently employ 20 individuals and it has been estimated that an additional 49 jobs will be added to the region in 2008.