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):   May 27, 2009

Aastrom Biosciences, Inc.
__________________________________________
(Exact name of registrant as specified in its charter)

     
Michigan 000-22025 94-3096597
_____________________
(State or other jurisdiction
_____________
(Commission
______________
(I.R.S. Employer
of incorporation) File Number) 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
______________________________________________
Former name or former address, if changed since last report

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[  ]  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[  ]  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[  ]  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[  ]  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))


Item 1.02 Termination of a Material Definitive Agreement.

On May 27, 2009, Aastrom Biosciences, Inc. (the "Company") terminated the Common Stock Purchase Agreement it had entered into with Fusion Capital Fund II, LLC ("Fusion Capital") dated as of October 27, 2008. As previously reported in the Company’s Form 10-Q filed with the SEC on May 8, 2009, the Company issued 25,742,817 shares of common stock (including 3,050,152 shares related to the commitment fee) to Fusion Capital under this Common Stock Purchase Agreement as of April 29, 2009.





Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.






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.
          
May 27, 2009   By:   /s/ George W. Dunbar, Jr.
       
        Name: George W. Dunbar, Jr.
        Title: Chief Executive Officer and President


Exhibit Index


     
Exhibit No.   Description

 
4.1
  Termination Agreement, dated May 27, 2009
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