Cellular Biomedicine Group Announces Discontinuation of Consulting Business Segment
June 30 2014 - 8:05AM
Cellular Biomedicine Group Inc. (Nasdaq:CBMG) (the "Company"), a
biomedicine firm engaged in the development of new treatments for
degenerative and cancerous diseases, today announced the
discontinuation of the Company's consulting business segment. The
consulting business is expected to be classified as discontinued
operations, effective July 1, 2014.
As a result, the Company expects to record a one-time pre-tax
cash charge of approximately $840,000 in the second quarter 2014
resulting from severance to be paid to employees affiliated with
the consulting business.
"After a circumspect review by management and the Board of
Directors, our decision to discontinue operating the legacy
consulting business should remove any performance variability
associated with this segment," said Dr. William (Wei) Cao, Chief
Executive Officer of Cellular Biomedicine Group.
"We also believe that the consulting business no longer fits
into our long-term strategy and vision. As such, we will focus
our resources on becoming a world-class, pure-play biotechnology
company bringing therapies to improve the health of patients in
China. By optimizing our resources, we believe the scalability
of our biomedicine business will deliver long-term value to our
partners, patients and shareholders," added Dr. Cao.
The consulting business' securities will remain on the Company's
balance sheet. Keith Wong and Norm Klein, the consulting business'
current management team will assist and ensure a smooth
discontinuation of our consulting operations.
About Cellular Biomedicine Group
Cellular Biomedicine Group, Inc. develops proprietary cell
therapies for the treatment of certain degenerative diseases and
cancers. Our developmental stem cell, progenitor cell, and
immune cell projects are the result of research and development by
scientists and doctors from China and the United
States. Our flagship GMP facility, consisting of eight independent
cell production lines, is designed, certified and managed according
to U.S. standards. To learn more about CBMG, please visit:
www.cellbiomedgroup.com
Forward-Looking Statements
Statements in this press release relating to plans, strategies,
trends, specific activities or investments, and other statements
that are not descriptions of historical facts may be
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995, Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. Forward-looking
information is inherently subject to risks and uncertainties, and
actual results could differ materially from those currently
anticipated due to a number of factors, which include, but are not
limited to, risk factors inherent in doing business.
Forward-looking statements may be identified by terms such as
"may," "will," "expects," "plans," "intends," "estimates,"
"potential," or "continue," or similar terms or the negative of
these terms. Although CBMG believes the expectations reflected in
the forward-looking statements are reasonable, they cannot
guarantee that future results, levels of activity, performance or
achievements will be obtained. CBMG does not have any obligation to
update these forward-looking statements other than as required by
law.
CONTACT: Sarah Kelly
Director of Corporate Communications, CBMG
+1 650 566-5064
sarah.kelly@cellbiomedgroup.com
Vivian Chen
Managing Director Investor Relations, Grayling
+1 646 284-9427
vivian.chen@grayling.com
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