Bookrunner Aegis helps fund clinical development, preclinical studies
By Devika Patel
Knoxville, Tenn., Aug. 13 - Aastrom Biosciences Inc. said it priced an $8.7 million public offering of stock with a $1.3 million greenshoe. The deal was announced April 29 as a stock offering and was revised to sell stock with warrants on Monday.
The company will sell 29 million common shares at $0.30 per share.
Investors will also receive warrants for 29 million shares. The warrants are each exercisable at $0.37 for five years. The strike price is a 30.19% discount to the Aug. 12 closing share price of $0.53. The price per share is a 43.4% discount to that price.
The shares and warrants will be issued separately.
Aegis Capital Corp. is the sole bookrunning manager.
Settlement is expected Aug. 16.
Proceeds will be used for clinical development, preclinical studies and general corporate purposes, including internal development costs, working capital, general administrative costs and the prosecution and maintenance of intellectual property.
Aastrom is a biotechnology company based in Ann Arbor, Mich.
| Issuer: | Aastrom Biosciences Inc.
|
| Issue: | Common stock
|
| Amount: | $8.7 million
|
| Greenshoe: | $1,299,000
|
| Shares: | 29 million
|
| Price: | $0.30
|
| Warrants: | For 29 million shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $0.37
|
| Bookrunner: | Aegis Capital Corp.
|
| Co-manager: | Maxim Group LLC
|
| Announcement date: | April 29
|
| Revised: | Aug. 12
|
| Pricing date: | Aug. 13
|
| Settlement date: | Aug. 16
|
| Stock symbol: | Nasdaq: ASTM
|
| Stock price: | $0.53 at close Aug. 12
|
| Market capitalization: | $13.16 million
|
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