Striking While the Iron Was Hot, Aastrom Biosciences (ASTM)
January 25th, 2010
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The public offering/ financing further strengthened its’ balance sheet and to complete ongoing Phase II clinical trials:
- Receiving approximately $12.4 M from the sale of units including the over-allotment,
- The 52,077,100 units consisted of 52,077,100 shares of common stock, Class A Warrants to purchase an aggregate of 39,057,825 shares of common stock and Class B Warrants to purchase an aggregate of 26,038,550 shares of common stock,
- Each Class A Warrant entitles the holder to acquire 1 share of common stock upon payment of $0.3718 per share, exercisable for a 5 year period commencing on a date 6 months after the closing date and each whole Class B Warrant entitles the holder to acquire 1 share of common stock upon payment of $0.26 per share, exercisable for a 6 month period,
- The public offering format was better then a PIPE or an RDO as retail investors could participate,
- The stock tumbled to $0.23 after ASTM priced the offering at $0.26 a share,
- The GOOD news … the “pre-baked” offering was over-subscribed … as a few investors could not get in,
- The offering was done at $0.26 while the stock was trading lower, now at $0.236, up $0.007 and continuing to … edge-up,
- Investors (and ME) should have realized something was in the air when ASTM amended (12/09) its Restated Articles of Incorporation that increased the authorized shares of common stock from 250 M to 500 M,
- The fully diluted value is heavy with approximately 230 M (+) of outstanding shares plus warrants plus the incentive options,
- But, the reverse is … still … DUE … to eliminate by 3/31/10 the NASDAQ listing issue,
- So, the question is creating a share price balancing act of appreciation to the future,
- News is the … only factor as interim clinical data from its cardiac and limb ischemia trials are due,
- The pure risk benefit … made sense … unfortunately price depreciation was inevitable … as in biotech, dilution is a constant,
- The REAL choice was the value of money, now or later,
- However, the proxy vote for the reverse split defined a range of 5 to 8 for 1,
- We can all multiply the current price against/with the current price but no one wants a post-reverse sell-off,
- Responding to our 1/15/10 post: the new CEO, Tim Mayleben deserves credit for a big and bold move … with this market slipping as it has: he raised $$, added a few institutions/hedge funds but, the piper (reverse) still has to be paid,
- Ranked a … BUY … as still below the offering pricing and news is due.
Over 6000 people piled into the Westin St. Francis Hotel in San Francisco for the 28th Annual Conference. Investors, Company presenters and entrepreneurs were emboldened by good biotech sector returns in 2009 of 18-28% with many stocks reaching new highs. Seasonality has been a factor with the so-called “January effect” where small cap stocks tend to spike up due to a number of factors but this Conference has been paramount. For example the IBB ETF is up about 6% from November levels.
Access Pharma (OTC: ACCP.OB) provided an update today on the status of its cobalamin-based oral drug delivery product development programs. The 
I had the opportunity last week to discuss the updated strategy and expected milestones for ImmunoCellular Therapeutics (OTC: IMUC.OB) in 2010 and beyond with CEO, Manish Singh, following the conclusion of the OneMed, JP Morgan, and other healthcare conferences in San Francisco. IMUC is an emerging cancer immunotherapy company that is developing therapeutic and diagnostic product candidates taking aim at the root cause of the disease, cancer stem cells, based on two technology platforms that include active (therapeutic cancer vaccines) and passive (monoclonal antibodies) approaches.
Below are some updates and developments from the past week, which I spent in San Francisco for the OneMed, JP Morgan, and other healthcare conferences.
BioTime, Inc (Amex: BTIM) develops blood plasma volume expanders and blood replacement solutions for hypothermic (low temperature) surgery, and organ preservation solutions and technology for use in surgery, emergency trauma treatment, and other applications.
Pluristem Therapeutics (NASDAQ: PSTI) is engaged in the production, research and development of placental-derived adherent stromal cells (ASCs). PSTI commercializes non-personalized (allogeneic) cell therapy products for the treatment of various severe degenerative, ischemic and autoimmune disorders.
Osiris Therapeutics (NASDAQ: OSIR) has focused on the advancement of mesenchymal stem cell (MSC) technologies and is focused on developing and marketing products to treat medical conditions in the inflammatory, orthopedic, and cardiovascular areas.
During the second week of January, Unilife Medical Solutions (ASX: UNI.AX) (OTC: UNIFF.PK) shareholders overwhelmingly voted in favor of the Company’s U.S. relocation. Unilife is now in the final stages of preparation for a NASDAQ: UNIS stock market trading debut, which is expected to occur by the end of February in conjunction with the Company’s re-domiciliation to Central Pennsylvania. Unilife is emerging as a leading innovator in the medical device manufacturing space with a focus on safety syringes and business segments that include pre-filled syringes for pharmaceutical companies to deliver injected medications, sharps safety devices for healthcare facilities, and contract manufacturing services.