ANN ARBOR ? Aastrom Biosciences last week said it sold $25.5 million in common stock to a select group of institutional investors. The proceeds will be ussed to fund clinical trials, manufacturing development, and provide working capital, the company said in a statement filed with the U.S. Securities and Exchange Commission.
The offering was for 15.9 million shares at a price of $1.60 per share. Merriman Curhan Ford & Co. served as the sole placement agent, and Dawson James Securities, Inc. served as the sub-placement agent, in this transaction. They split $1.7 million for services provided.
As of December 31, 2005, Aastrom had a net tangible book value of $26,611,000, or $0.26 per share of common stock.
Aastrom is a development stage company focused on ex vivo production and sale of proprietary human cell products for use in cell therapy and tissue regeneration. Its pre-clinical and clinical product development programs utilize bone marrow-derived adult stem and progenitor cell mixtures being investigated for aiding in the growth of tissues such as bone, vascular tissue and cartilage, as well as blood and immune system cells.
Aastrom said it should net $23.8 million after deducting the placement agent?s fee and estimated offering expenses and assuming that we sell the maximum number of shares offered.
Net proceeds from this offering, together with other available funds, will be used as follows:
45 percent for clinical trials and research and development;
35 percent for manufacturing development and expansion;
20 percent for other working capital and general corporate purposes.
“We have not specifically identified the precise amounts we will spend on each of these areas or the timing of these expenditures,” Aastrom officials said in its SEC filing. “The amounts actually expended for each purpose may vary significantly depending upon numerous factors, including the amount and timing of the proceeds from this offering, progress with clinical trials and other product development activities, other cell therapy application programs and changing assessments of potential market opportunities and competitive developments. In addition, expenditures may also depend on the establishment of new collaborative arrangements with other companies, the availability of other financing, and other factors.
“We anticipate that we will be required to raise substantial additional capital to continue to fund the clinical development of our cell therapy applications. We may raise additional capital through additional public or private financing, as well as collaborative relationships, incurring debt and other available sources.”
