BENSALEM, Pa.–(BUSINESS WIRE)–Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors who purchased Global Cord Blood Corporation (āGlobal Cordā or the āCompanyā) (OTC: CORBF) securities between June 4, 2019 and May 3, 2022, inclusive (the āClass Periodā). Global Cord investors have until June 21, 2024 to file a lead plaintiff motion.
Investors suffering losses on their Global Cord investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to howardsmith@howardsmithlaw.com.
On April 29, 2022, Global Cord announced that it had entered into a Material Definitive Agreement to acquire biotechnology company, Cellenkos Inc. (āCellenkosā) for over $1 billion, including $664 million in cash and 114 million Global Cord shares. The Company stated that it planned to issue approximately 125 million new shares, valued at $11 per share, and pay $664 million in cash as total consideration, thereby diluting Company shareholders by half and depleting its sizable cash balance.
On this news, Global Cordās stock price fell $0.98, or 28.6%, to close at $2.45 per share on May 2, 2022, thereby injuring investors.
Then, on May 3, 2022, Blue Ocean Structure Investment Company Limited (āBlue Oceanā) filed a petition opposing the transaction, stating that Cellenkos had no discernible long-term value, that the transaction purchase price was unjustifiable, that the transaction would result in a massive dilution of Global Cord shareholders, that the close relationship between Global Cord and Cellenkos constituted a conflict of interest, and that the transaction was approved without sufficient shareholder knowledge.
On this news, Global Cordās stock price fell $0.22, or 9.1%, to close at $2.20 per share on May 5, 2022, thereby injuring investors further.
Then, on September 22, 2022, the Grand Court of the Cayman Islands suspended the powers of Global Cordās Directors and appointed Joint Provisional Liquidators (āJPLsā) over the Company after evidence was presented showing that the Cellenkos Transaction was actually part of a cover-up aimed at āfilling a gapā in Global Cordās balance sheet. Additionally, the NYSE halted trading in Global Cordās ordinary shares, effective September 23, 2022.
On June 23, 2023, Global Cord was removed from the NYSE by the SEC.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Companyās business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) Global Cord employed a capital allocation strategy designed to reserve funds for Company insiders and related parties rather than for the benefit of Company shareholders; (2) Global Cordās decisions to reject multiple going private offers and enter into the Transaction were nothing more than self-serving and conflicted attempts by Defendants to divert company funds to corporate insiders and related parties; (3) Defendants fundamentally misrepresented to investors Global Cordās approach to capital allocation, strategic investments, acquisitions, and related party transactions as a result of the misappropriation by Defendant Kam and his entities of hundreds of millions of dollars from the Company; and (4) as a result, Defendantsā positive statements about the Companyās business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
If you purchased Global Cord securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020, by telephone at (215) 638-4847 or by email to howardsmith@howardsmithlaw.com, or visit our website at www.howardsmithlaw.com.
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Contacts
Law Offices of Howard G. Smith
Howard G. Smith, Esquire
215-638-4847
howardsmith@howardsmithlaw.com
www.howardsmithlaw.com