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Aastrom Announces $22.5M Public Offering to Help Fund Stem Cell Trials

Aastrom Biosciences, an Ann Arbor, MI-based biotech company developing experimental adult stem cell therapy, announced this morning a $22.5 million public offering at a purchase price of $2.25 per unit. Aastrom (NASDAQ: ASTM) plans to use the proceeds for research and development expenses, according to a news release.

As Luke Timmerman, Xconomy’s national biotech editor, reported in October, Aastrom has been granted fast-track status by the FDA in trials for treatment of critical limb ischemia, a severe form of cardiovascular disease in the legs.

The company first announced the intended offering yesterday afternoon, which apparently spooked some investors and spurred a 22 percent drop in the company’s stock in after-hours trading.