Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Cardio3 BioSciences seeks 20M Euros in funding for Stem-Cell Trials

Cardio3 BioSciences, the maker of an experimental stem-cell heart therapy called C-Cure is …. (hoping) raising 20M Euros (US$29M) in private money 5 months after abandoning a public offering.

The Bottom Line: Cardio3 has commitments to cover the majority of C-Cure’s development funding, which may take the form of a private placement or convertible debt. The Mont-Saint-Guibert, Belgium- based company will use the proceeds to begin a final round of human testing for C-Cure’s regulatory approval. Cardio3 raised 17M Euros in 2010 to complete a 2nd round of clinical trials, announced a letter of intent in June on financing and cell-culture technology with Danbury, CT based Advanced Technology Materials Inc. C-Cure is a treatment that uses modified stem cells taken from bone marrow to fight chronic heart failure, is based on technology licensed from the Rochester, Minnesota-based Mayo Clinic. The research hospital owns more than a ¼ of Cardio3, according to the Belgian company’s website. Spanish blood-plasma products maker Grifols SA, Belgian biotechnology- finance company Life Sciences Research Partners and Luxembourg- based venture-capital firm Hunza Ventures II are among Cardio3’s other shareholders. Existing investors will provide most of the new funding.  Cardio3 may have a difficult time competing with Mesoblast, a Melbourne-based developer of stem-cell treatments with a market value of A$2.6B (US$2.9B).  10 health-care companies in Western Europe have raised about $246M this year by issuing shares to the public, that compares with 11 companies that have secured a total of more than $1B in the US, not including a $3.8B offering by hospital operator HCA Holdings in March.