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EXHIBIT 99.1
PRESS RELEASE ISSUED JUNE 12, 2000
AASTROM BIOSCIENCES COMPLETES $6 MILLION PRIVATE EQUITY FINANCING
Ann Arbor, Michigan, June 12, 2000 - Aastrom Biosciences, Inc. (Nasdaq: ASTM)
announced today that it has issued $6 million in equity capital through the sale
to a single investor of approximately 2,810,000 shares of its common stock. The
completion of this financing will allow the Company to further pursue its
clinical trial programs for the AastromReplicell(TM) Cell Production System and
expand operations.
"The continued investor interest in the Company and stabilized biotech capital
markets have allowed us to complete a second financing this year," said R.
Douglas Armstrong, Ph.D., President and CEO of Aastrom. "Together, these two
separate financings have raised an aggregate of approximately $12 million this
year and have allowed us to resume our U.S. clinical trial programs and to
initiate expanded operations. Additionally, we are now in the position to resume
pilot European marketing of the AastromReplicell(TM) System and to pursue
application of our products and technologies into new therapy opportunities."
In addition to the sale of the common stock, the Company may issue additional
shares through the exercise of a warrant effectively providing the investor with
a limited price adjustment. The warrant is exercisable, if at all, beginning on
June 8, 2001 if the market price of the common stock at that time is below
$2.135. The warrant will immediately expire if the average price of the
Company's common stock during specified periods over the next year exceeds $4.27
per share or upon certain change in control events.
Aastrom is developing a broad range of technologies designed to provide a way
for cell-based therapies to become integrated into standard medical practice.
These technologies include cell production processes, devices to implement those
processes at large scale, and automated clinical systems intended to provide a
standardized way of producing cells for therapeutic uses, and as a result, make
cells more accessible to patients and physicians. In addition to developing its
own cell therapies, Aastrom intends to use its product platform to collaborate
with others that are developing such emerging therapies to provide an acceptable
commercialization outlet to medical practice.
The AastromReplicell(TM) System is a first of its kind product that consists of
an instrumentation platform designed to operate a family of patient-specific
cell therapy kits to produce cells for a broad range of therapeutic
applications. Each therapy kit is a single use consumable product that is
tailored to the specific cell type desired for therapeutic use. Aastrom has
developed two such therapy kits including the CB-I Therapy Kit for the
production of cord blood cells and the SC-I Therapy Kit for the production of
bone marrow-derived stem cells. Aastrom recently announced the initiation of
development programs for its CB-II Therapy Kit, to produce significantly higher
quantities of cord blood cells compared to its CB-I Therapy Kit, and for its
OC-I Therapy Kit, intended for the production of bone-forming cells.
Aastrom Biosciences, Inc. is pioneering the development of proprietary clinical
systems including the AastromReplicell(TM) System, a first of its kind product,
to enable physicians and patients greater accessibility to cells used for
therapy. Aastrom has received patents covering methods and devices for the ex
vivo production of human stem and other types of cells. The AastromReplicell(TM)
System is under development, and is not available for sale at this time in the
U.S., except for research and investigational use.
This document contains forward-looking statements, including without limitation
statements concerning product development objectives, clinical development
programs, resumption of marketing activities in Europe, and potential advantages
of the AastromReplicell(TM) System and related Therapy Kits, which involve
certain risks and uncertainties. Actual results may differ significantly from
the expectations contained in the forward-looking statements. Among the factors
that may result in differences are the results obtained from clinical trial and
development activities, regulatory approval requirements, market prices for
Aastrom's common stock, the level of interest by possible strategic alliance
partners in Aastrom's technologies and products under development, the adequacy
of existing funding to support resumed activities, and the availability of
resources. These and other significant factors are discussed in greater detail
in Aastrom's Annual Report on Form-10K, as amended, and other filings with the
Securities and Exchange Commission.
Contact: Todd E. Simpson, VP Finance & Administration, CFO, Aastrom Biosciences,
Inc., 734-930-5777. Investor & Media, Noonan/Russo Communications, Inc.,
212-696-4455, Lisa Fern, ext. 353 (media), John Capodanno, ext. 246 (investors).
