Company sells preferreds to Eastern Capital in largest-ever offering
By Devika Patel
Knoxville, Tenn., March 9 - Aastrom Biosciences, Inc. said it completed a $40 million private placement of 11.5% series B-1 convertible preferred stock with Eastern Capital Ltd. MLV & Co. arranged the deal.
The company sold 12,308 preferreds at $3,250.00 apiece. They have a five-year term and are putable. The preferreds are convertible into common stock at a rate of 1,000 common shares per preferred after March 8, 2017, which is equal to a conversion price of $3.25 per share. The conversion price is a 78.57% premium to the closing share price on March 8 of $1.82.
Proceeds will be used for general corporate purposes, including research and development expenses.
"This financing is the largest in Aastrom's history and represents a strong endorsement of our team, our Phase 2b RESTORE-CLI clinical results and our prospects for future success by one of the industry's leading long-term, fundamental investors," president and chief executive officer Tim Mayleben said in a press release. "The amount and structure of this financing significantly improve our financial position and our ability to execute the pivotal Phase 3 REVIVE-CLI clinical trial with ixmyelocel-T."
Aastrom is a biotechnology company based in Ann Arbor, Mich.
| Issuer: | Aastrom Biosciences, Inc.
|
| Issue: | Series B-1 convertible preferred stock
|
| Amount: | $40 million
|
| Shares: | 12,308
|
| Price: | $3,250.00
|
| Term: | Five years
|
| Dividends: | 11.5%
|
| Conversion price: | $3.25
|
| Conversion premium: | 78.57%
|
| Conversion rate: | Into 1,000 common shares (per preferred)
|
| Put: | Yes
|
| Warrants: | No
|
| Agent: | MLV & Co.
|
| Investor: | Eastern Capital Ltd.
|
| Settlement date: | March 9
|
| Stock symbol: | Nasdaq: ASTM
|
| Stock price: | $1.82 at close March 8
|
| Market capitalization: | $83.84 million
|
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