Cellular Biomedicine Group Responds to False Statements and Allegations Made by Short Seller
08 April 2015 - 11:52PM
Cellular Biomedicine Group Inc. (Nasdaq:CBMG) ("CBMG" or the
"Company"), a biomedicine firm engaged in the development of
effective treatments for degenerative and cancerous diseases, today
responded to false statements and allegations made by Pump Stopper
on April 7, 2015. The Company fully respects the right of any third
party to express its opinion but reminds investors that facts are
facts.
The posting compiles false and misleading selective information
in a manner to maliciously advance, we believe, a "short agenda"
for personal gain to the detriment of the shareholders of the
Company.
Here are the facts:
Transparency: The Company welcomes investors and potential
strategic partners to attend the Open House at CBMG's facilities on
April 17, 2015 for a half day of management presentations, question
and answer sessions, a facility tour and senior executive
briefings. (Space is limited; please register to attend with
sarah.kelly@cellbiomedgroup.com). The Company is fully committed to
the highest standard of corporate governance as well as
transparency and fair and timely disclosure in full compliance with
applicable law and SEC regulations.
Auditor Turnover: Like other young, early stage companies CBMG
engaged with a smaller auditing firm prior to listing on NASDAQ.
Shortly after the Company became a publicly reporting company, it
underwent a diligent selection process and engaged BDO, a top five
accounting firm before the up-listing to NASDAQ.
Adverse Effects of Clinical Trials: CBMG employed strict
protocols in patient selection for its CAR-T Phase I clinical
trials (targeting CD19, CD20, CD30, and EGFR1). The results of CD20
were published and those of CD19 were accepted in peer-reviewed
scientific journals [view here]. According to comparable trials
conducted by the Company's global peers, the adverse effects
detected in these trial participants are on par with similar
studies and, the efficacy (overall response rate), if reviewed
carefully, is promising. Furthermore, it is unrealistic to expect a
100% survival rate during cancer drug clinical trials, especially
considering that the admitted participants in the trials are
advanced, relapsed, and refractory candidates.
Code of Ethics and Conduct: CBMG's management abides by a strict
code of ethics and conduct as set forth in the Company's charter.
As such, CBMG neither has nor had any investment or business
relationship with the named individual who was indicted as
indicated by the report.
Stock Promotion: Investor Relations is a critical and important
fiduciary duty of management and is differentiated from "stock
promoting." The Company employs the highest standards of full
disclosure as evidenced by regular and frequent dissemination of
news through press releases, conferences and media. In addition,
the Company's research analyst possesses years of covering the stem
cell and immune cell therapy sectors. CBMG retained this analyst as
a strategic consultant for two months between October and November
2014 for drug pipeline, operational review, and technology
recommendations. His research coverage is completely independent of
this engagement.
"The Company prides itself on corporate governance and public
company management and has made meaningful strides over the last
five quarters. We will continue to focus our efforts on building a
world-class biotechnology company focused on providing solutions to
large unmet medical needs and improving patient quality of life
while delivering shareholder value," commented Dr. William (Wei)
Cao.
The company intends to publish a more detailed response to the
false and misleading allegations made by Pump Stopper on the
Company's website.
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 in China, 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
+1 347 481-3711
vivian.chen@grayling.com
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