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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported)		July 10, 2003

Aastrom Biosciences, Inc.

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Michigan		0-22025		94-3096597
(State or other jurisdiction of incorporation)		(Commission File Number)		(IRS Employer Identification No.)

24 Frank Lloyd Wright Drive, P.O. Box 376, Ann Arbor Michigan			48106
(Address of principal executive offices)				(Zip Code)

Registrant’s telephone number, including area code		(734) 930-5555

Not Applicable

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	Item 5. Other Events.
	Item 7. Financial Statements and Exhibits.
SIGNATURES
EXHIBIT INDEX
EXHIBIT 99.1

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Item 5. Other Events.

On July 10, 2003, Aastrom Biosciences issued a press release relating to the consummation of several financing transactions involving sales of the Company’s stock. The press release is attached as Exhibit 99.1.

Item 7. Financial Statements and Exhibits.

Exhibit
No.		Description
99.1		Press Release of July 10, 2003 relating to consummation of financing transactions

SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

		Aastrom Biosciences, Inc.
		By:		/s/ Alan M. Wright
Date: July 10, 2003				Senior Vice President, Administrative and Financial Operations, CFO

 

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EXHIBIT INDEX

Exhibit
No.		Description
99.1		Press Release of July 10, 2003 relating to consummation of financing transactions

 

                                                                    EXHIBIT 99.1

(AASTROM BIOSCIENCES INC. LOGO)
(AASTROM BIOSCIENCES INC. LETTERHEAD)



FOR IMMEDIATE RELEASE

CONTACTS:   Kris M. Maly or Becky Anderson
            Investor Relations Department
            Aastrom Biosciences, Inc.
            Phone: (734) 930-5777

             AASTROM BIOSCIENCES ANNOUNCES COMPLETION OF FINANCINGS

       -- Aastrom's 2004 Fiscal Year Starts Strong with New Investors, New
                           Funding and New Partner --

ANN ARBOR, MICHIGAN, JULY 10, 2003 - Aastrom Biosciences, Inc. (NasdaqSC: ASTM)
announced today that it has raised a total of $9.5 million at an average price
to the Company of $0.96 per share since June 1, 2003 through multiple sales
transactions of the Company's common stock. This series of financings culminated
in a final private placement of 5.06 million shares of the Company's common
stock for gross proceeds of $4.3 million.

Rodman & Renshaw, Inc. served as the exclusive placement agent in the latest
financing that introduced several new institutional investors to Aastrom. As
part of this transaction, the Company will also issue warrants exercisable for 4
years to purchase up to 1.26 million shares of common stock at a price of $1.23,
as well as warrants to purchase up to approximately one million shares of common
stock at $1.50 per share prior to October 31, 2003.

"These financings, along with recent NIH grant awards, provide financial
resources to support the further development of Aastrom's bone regeneration,
cancer vaccine and vascular system programs and to increase the general working
capital already in place, bringing total cash-on-hand to approximately $16
million," said Alan M. Wright, Senior Vice President Administration & Financial
Operations and Chief Financial Officer of Aastrom. "With this funding secured,
Aastrom will be able to aggressively pursue its operating plan for the entire
2004 fiscal year, and continue to meet the Nasdaq core listing requirements."

Aastrom's funding progress follows its recently announced strategic alliance
with the Musculoskeletal Transplant Foundation (MTF), the leading provider of
allograft matrices (donor-derived tissues) to the orthopedic market. This new
partnership and increased investor interest have been stimulated by Aastrom's
advancements with its Tissue Repair Cell program. With MTF sharing the
development and clinical trial expenses of the new bone grafting treatment
approaches and products, these financings have greatly enhanced Aastrom's
ability to move its new major market products forward.

The 5.06 million private placement shares and the associated warrants were
offered to several accredited investors in reliance on an exemption from the
registration requirements of the Securities Act of 1933, as amended (the
"Securities Act"). The offering has not been registered under the Securities Act
or any state securities laws and the securities may not be offered or sold
absent registration or an applicable exemption from the registration
requirements of the Securities Act and applicable state securities laws. In
connection with the offering, Aastrom Biosciences, Inc. has agreed, subject to
certain terms and conditions, to file a registration statement under the
Securities Act covering the resale of the shares purchased and shares issuable
upon exercise of the warrants. This press release does not and will not
constitute an offer to sell or the solicitation of an offer to buy shares or
warrants.

ABOUT AASTROM BIOSCIENCES, INC.

Aastrom Biosciences, Inc. (NasdaqSC: ASTM) is a late-stage development company
focused on human cell-based therapies. The AastromReplicell(TM) System - a
patented, integrated system of instrumentation and single-use consumable kits
for the production of patient-specific cells - is


                                     -more-



                                                              Aastrom-Financings
                                                                   July 10, 2003
                                                                          Page 2


the Company's core technology for its Prescription Cell Products (PCP) business
and its Cell Production Products (CPP) business. The principal focus of the PCP
business is the repair or regeneration of tissue intended for large markets such
as bone grafting and severe osteoporosis. The CPP business markets the
AastromReplicell(TM) System to researchers and companies for their production of
cells for clinical trials. These two businesses are intended to enable Aastrom
to generate multiple paths to revenue. The initial commercial phase of the CPP
business for dendritic cell production products is underway in Europe and the
United States. For more information, visit Aastrom's website at www.aastrom.com.

THIS DOCUMENT CONTAINS FORWARD-LOOKING STATEMENTS, INCLUDING WITHOUT LIMITATION,
STATEMENTS CONCERNING CAPITAL AVAILABILITY, PRODUCT DEVELOPMENT OBJECTIVES,
POTENTIAL PRODUCT APPLICATIONS, AND POTENTIAL PATHS TO REVENUE, WHICH INVOLVE
CERTAIN RISKS AND UNCERTAINTIES. THE FORWARD-LOOKING STATEMENTS ARE ALSO
IDENTIFIED THROUGH USE OF THE WORDS "EXPECTED," "INTENDED," AND OTHER WORDS OF
SIMILAR MEANING. ACTUAL RESULTS MAY DIFFER SIGNIFICANTLY FROM THE EXPECTATIONS
CONTAINED IN THE FORWARD-LOOKING STATEMENTS. AMONG THE FACTORS THAT MAY RESULT
IN DIFFERENCES ARE UNCERTAINTIES INHERENT IN PRODUCT DEVELOPMENT ACTIVITIES,
ACTIONS TAKEN BY MARKETING ALLIANCE PARTNERS, 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 AND OTHER FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION.

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