Global Cord Blood Corporation - CORBF stock
About[edit]
Global Cord Blood Corporation, along with its affiliated companies, offers umbilical cord blood storage and related services within the People's Republic of China. The company provides cord blood testing, processing, and storage services for its clients and also handles donated cord blood, offering matching services. As of March 31, 2022, the company operated three cord blood banks, situated in the Beijing municipality, Guangdong province, and Zhejiang province. Formerly known as China Cord Blood Corporation, it underwent a name change to Global Cord Blood Corporation in March 2018. The company's headquarters is located in Central, Hong Kong, and it operates as a subsidiary of Blue Ocean Structure Investment Company Ltd.[1]
History[edit]
The origin of Global Cord Blood Corporation can be traced back to its predecessor, China Cord Blood Corporation. China Cord Blood Corporation was founded in 2002 by two entrepreneurs, Dr. Yuen Kam and Dr. Ken Luong. The company's primary focus was on providing umbilical cord blood banking services in the People's Republic of China.[2]
Umbilical cord blood banking involves the collection, testing, processing, and storage of stem cells from the umbilical cord after a baby is born. These stem cells can be used for various medical treatments, particularly in the field of hematopoietic stem cell transplantation, which is essential for treating certain blood disorders and cancers.[3]
China Cord Blood Corporation was one of the pioneers in the field of cord blood banking in China and became the first licensed cord blood banking operator in the country. The company established several cord blood banks in different regions of China to serve the growing demand for these services.[3]
In March 2018, China Cord Blood Corporation underwent a name change and was rebranded as Global Cord Blood Corporation, likely to reflect its expanding presence and aspirations beyond China's borders. Despite the name change, the company continued its core business of providing umbilical cord blood storage and ancillary services, with a focus on advancing stem cell therapies to combat various diseases, including hematologic malignancies and solid tumors.[4]
Bankruptcy[edit]
The company faced bankruptcy proceedings due to a power tussle between its two major shareholders, Golden Med and Blue Ocean Structure Investment (BVI) Company Limited (Blue Ocean). Both claimed different ownership percentages in GCBC. On May 5, 2022, Blue Ocean initiated a winding-up process in the Grand Court of the Cayman Islands. They alleged that GCBC wrongfully transferred over US$600 million and issued new shares to two entities, one being Cellenkos (known as the Cellenkos transaction). Blue Ocean argued that this move breached the trust responsibilities of GCBC's board and leadership, and if the transaction went through, it would significantly reduce the shareholders' share value. Due to this petition, the company had to pause the Cellenkos deal. The petition also sought various restrictions on the board and requested the company's dissolution under Section 92(e) of the Cayman Island's Companies Act. In response to Blue Ocean's request, the Cayman Grand Court designated joint provisional liquidators (JPLs) to delve into and address Blue Ocean's claims.[5]
NYSE Delisting[edit]
On June 7, 2023, the New York Stock Exchange announced that it had begun the process for delisting Global Cord Blood stock from the exchange. Shares stopped trading in September 2022. This action by the NYSE was a reaction to the Grand Court of the Cayman Islands appointing Joint Provisional Liquidators (JPLs) for the Company. Post their appointment, the JPLs revealed that due to some inappropriate actions both prior and post their induction, the operational businesses and assets of the Company's subsidiaries in the People’s Republic of China were moved away from the Company. The JPLs are actively working to regain control over these businesses and assets. However, as of now, the issue hasn't been resolved.[6]
- ↑ Yahoo Finance. CORBF Stock Profile. Retrieved on 8/16/2023.
- ↑ SEC.gov. Global Cord Blood Corporation Form 20-F. March 31, 2019.
- ↑ 3.0 3.1 gcs-web.com. Global Cord Blood Corporate Profile. Retrieved on 8/15/2023.
- ↑ PR Newswire. China Cord Blood Corporation to Change Corporate Name to "Global Cord Blood Corporation". February 7, 2018.
- ↑ Lexology. In review: insolvency law, policy and procedure in USA. October 4, 2023.
- ↑ Yahoo Finance. NYSE to Commence Delisting Proceedings Against Global Cord Blood Corporation. June 7, 2023.
