Aastrom Biosciences Enters Into $15 Million Equity Commitment With Lincoln Park Capital
January 27 2014 - 4:05PM
Aastrom Biosciences, Inc. (Nasdaq:ASTM), the leading developer of
patient-specific, expanded multicellular therapies for the
treatment of severe, chronic cardiovascular diseases, announced
today that it has entered into a stock purchase agreement with
Lincoln Park Capital Fund, LLC ("Lincoln Park"), an institutional
investor. Under the terms of the agreement, Aastrom has the right
to sell up to $15 million in shares of common stock to Lincoln Park
over a thirty-month period subject to certain limitations and
conditions set forth in the purchase agreement.
"This agreement provides Aastrom with an additional tool for
accessing capital to complement business collaborations, grants and
traditional fundraising and, as such, provides the company with
added financial strength and flexibility," commented Nick
Colangelo, president and chief executive officer of Aastrom. "The
agreement enables us to sell shares from time-to-time on
market-based terms to a committed, long-time investor and we intend
to use the facility as appropriate to help support the achievement
of our operational and other corporate objectives, which include
the advancement of our Phase 2b ixCELL-DCM clinical trial in
patients with advanced heart failure due to ischemic dilated
cardiomyopathy."
The elements of the new facility include:
- the company controls the timing and amount of any sales of
common stock to Lincoln Park at a known price;
- Lincoln Park cannot require the company to make sales, but is
obligated to make purchases as the company directs in accordance
with the terms of the agreement;
- no upper limit on the price per share that Lincoln Park could
be obligated to pay for shares of common stock under the purchase
agreement; and
- no limitations on use of proceeds, financial covenants,
restrictions on future financings, rights of first refusal,
participation rights, penalties or liquidated damages.
More information is available in the company's Current Report on
Form 8-K, filed today with the U.S. Securities and Exchange
Commission.
Aastrom Biosciences
Aastrom Biosciences is the leader in developing
patient-specific, expanded multicellular therapies for use in the
treatment of patients with severe, chronic cardiovascular diseases.
The company's proprietary cell-processing technology enables the
manufacture of ixmyelocel-T, a patient-specific multicellular
therapy expanded from a patient's own bone marrow and delivered
directly to damaged tissues. Aastrom has advanced ixmyelocel-T into
late-stage clinical development, including a Phase 2b clinical
trial in patients with ischemic dilated cardiomyopathy. For more
information, please visit Aastrom's website at www.aastrom.com.
The Aastrom Biosciences, Inc. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=3663
About Lincoln Park Capital Fund, LLC
("LPC")
LPC is an institutional investor headquartered in Chicago,
Illinois. LPC's experienced professionals manage a portfolio of
investments in public and private entities. These investments are
in a wide range of companies and industries emphasizing life
sciences, specialty financing, energy and technology. LPC's
investments range from multiyear financial commitments to fund
growth to special situation financings to long-term strategic
capital, offering companies certainty, flexibility and consistency.
For more information, visit www.lpcfunds.com.
This document contains forward-looking statements, including,
without limitation, statements concerning future purchases pursuant
to the purchase agreement with Lincoln Park, clinical trial plans
and progress, objectives and expectations, clinical activity
timing, intended product development, all of which involve certain
risks and uncertainties. These statements are often, but are not
always, made through the use of words or phrases such as
"anticipates," "intends," "estimates," "plans," "expects," "we
believe," "we intend," and similar words or phrases, or future or
conditional verbs such as "will," "would," "should," "potential,"
"could," "may," or similar expressions. Actual results may differ
significantly from the expectations contained in the
forward-looking statements. Among the factors that may result in
differences are the inherent uncertainties associated with the
closing of the offering described herein, Aastrom's intended use of
proceeds in connection with the offering, clinical trial and
product development activities, regulatory approval requirements,
competitive developments, and the availability of resources and the
allocation of resources among different potential uses. These and
other significant factors are discussed in greater detail in
Aastrom's Annual Report on Form 10-K for the year ended December
31, 2012, filed with the Securities and Exchange Commission ("SEC")
on March 18, 2013, Quarterly Reports on Form 10-Q and other filings
with the SEC. These forward-looking statements reflect management's
current views and Aastrom does not undertake to update any of these
forward-looking statements to reflect a change in its views or
events or circumstances that occur after the date of this release
except as required by law.
CONTACT: Media contact:
Andrea Coan
Berry & Company
acoan@berrypr.com
(212) 253-8881
Investor contact:
Chad Rubin
The Trout Group
crubin@troutgroup.com
(646) 378-2947
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