(1)	Title of each class of securities to which transaction applies:

(2)	Aggregate number of securities to which transaction applies:

(3)	Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule 0-11 (set forth the amount on which the filing fee is calculated and state how it was determined):

(4)	Proposed maximum aggregate value of transaction:

(5)	Total fee paid:

☐	Check box if any part of the fee is offset as provided by Exchange Act Rule 0-11(a)(2) and identify the filing for which the offsetting fee was paid previously. Identify the previous filing by registration statement number, or the Form or Schedule and the date of its filing.

(6)	Amount previously paid:

(7)	Form, Schedule or Registration Statement No.:

(8)	Filing party:

(9)	Date Filed:

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Operator:

Welcome to the Caladrius Biosciences 2016 4th quarter and year end financial results conference call. At this time all participants are in a listen-only mode. Following management's prepared remarks, we will hold a Q&A session. To ask a question at that time, please press the * key followed by 1 of your, on touch tone phone. If anyone has difficulty hearing the conference, please press *0 for operator assistance. As a reminder, this conference is being recorded today, March 17, 2017. I would now like to turn the conference over to Anne Marie Fields. Please go ahead, ma'am.

Anne Fields:

Thank you. Good morning. This is Anne Marie Fields with LHA, investor relations firm for Caladrius Biosciences. Thank you all for participating in today's call. Joining me from Caladrius Biosciences are Dr. David Mazzo, Chief Executive Officer, and Joseph Talamo, Chief Financial Officer. Yesterday evening Caladrius issued a news release announcing Hitachi Chemical’s acquisition of the company's remaining interest in its PCT subsidiary, and earlier this morning Caladrius issued a news release announcing the company's 2016 4th quarter and year end financial results. If you have not received these news releases, or if you would like to be added to the company's distribution list, please call LHA in New York at 212-838-3777 and speak with Carolyn Curran or email updates@caladrius.com.

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David Mazzo:

Thanks, Anne Marie, and good morning to everyone. And to those who are celebrating, happy St. Patrick's Day. Thank you all for joining on today's call. Yesterday evening we announced an event that is transformational to Caladrius, both in terms of our financial position and in terms of our business strategy. I'm delighted to report the entry into an agreement for the acquisition of our remaining 80.1% interest in PCT by Hitachi Chemical. This transaction has the potential to unlock the tremendous value of our PCT asset in a way that was unimaginable just a few years ago and create the well-capitalized, debt-free, pure-play, self-therapeutic development company with compelling opportunities for near and longer term value creation.

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Joseph Talamo:

Thank you, Dave, and good morning, everyone. Before I review the, our 2016 financial results, I'd briefly like to touch upon the financial impact, both immediate and upon closing, of the agreement with Hitachi for the sale of our remaining 80.1% interest in PCT. Under the terms of the agreement, upon closing we will have received a total of 70 million in cash, 5 million of which should be received in the next few days, plus an additional 5 million to be received at the expiration of the escrow period, assuming no in- indemnification claims are made. It goes without saying that an infusion of non-dilutive capital of this magnitude enables us to fully fund our ongoing CLBS03 clinical development program, to selectively and opportunistically invest in other pipeline programs, and to pay off the balance of our 5.5 million debt with Oxford.

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David Mazzo:

Thanks, Joe. As the Hitachi Chemical agreement has the potential to redefine Caladrius as a pure-play cell therapy development company, let's turn now to a discussion of our business strategy. Our clinical strategy is to develop select assets and to advance them to the next development milestone, representing a significant increase in value, most often to proof-of-concept demand. Our long-term goal will be to partner those assets for further clinical development and ultimately commercial sale. We believe this strategy will create value for our shareholders, first by virtue of simply achieving development maturation and de-risking and then through the ultimate economics associated with partnering them.

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Operator:	At this time I'd like to remind everyone: in order to ask a question, press * then the number 1 on your telephone keypad. Your first question comes from the line of Keay Nakae from Chardan. Your line is open.

Keay Nakae:	Yes. I know you're not giving guidance for the obvious reasons; but, at least for the things you are committed to doing, such as the continuation of the T-Rex study, what do you think the R&D spend allocated to that will be in 2017?

David Mazzo:

Okay. Thanks for, for joining and thanks for the question. I'll let Joe, you know, perhaps, embellish upon what I'm about to say. But, as you noted, we're not prepared to give specific guidance and one of, one of the reasons is that, as those who have paid attention to the terms of the CIRM grant recognize that, there are two conditions within the CIRM grant which determine exactly how much of the $12.2 million, if not all, that we will receive during the course of the trial.

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Joseph Talamo:	No. I think that's good.

David Mazzo:	Okay.

Keay Nakae:	Okay. And then, you know, with respect to the Hitachi purchase going through, other than shareholder approval, are there any other conditions that need to be satisfied that, if not, prevent it from, from going through?

David Mazzo:	No. It's just the customary closing conditions. You know, the specific details are in the filings that we made. But, no, it's really just the shareholders' vote that is, I would say, you know, the critical path to closing.

Keay Nakae:	Okay. And then with respect to the CLI study in Japan, what other work needs to be done before you commence that study again, predicated on the Hitachi transaction being completed?

David Mazzo:

Right. The rest, the only work that remains is sort of the typical operation planning and startup work for a study. So, we already have an arrangement with a manufacturing facility in, in Kobe that we helped establish and it's basically standing by, you know, ready, and we'll just have to then you know, initiate sites, identify and initiate sites. But all that planning work can, can take place now. It really costs nothing, other than internal effort. No capital will be outlaid until the closing of the Hitachi deal, and then we'll be poised, hopefully, to initiate patient enrollment fairly quickly after that.

Keay Nakae:	Okay. And, and while, you know, 35 patients doesn't sound like a, a large study, given the criteria, no-option patients with what degree of disease ... And I guess at the end of the day, what I'm looking for is how difficult it ... How difficult will it be to actually find these patients to participate in the study?

David Mazzo:

The, you know, our chief medical officer, is actually on a flight at the moment, unfortunately. Otherwise, I would defer to him to give you the specifics of the, the scoring criteria necessary for the patients to enroll. But, based upon previous work done in this population in Japan by the person who will be the principal investigator for our study, we, we believe that the study will enroll very readily, especially given that, in conjunction with the agreement with the Japanese PDMA, this is an open-label trial.

Keay Nakae:	Okay. That's all I have. Thanks.

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David Mazzo:	Thanks, Keay.

Operator:	Your next question comes from the line of Steve Brozak with WBB. Your line is open.

Steve Brozak:

Hey, congratulations, Dave. Getting an 81% premium to your entire market cap on PCT is obviously an accomplishment. Let me ask you, 'cause (clears throat) obviously Caladrius has you know, been known for, as a research entity, a clinical entity, and, you know, a manufacturing entity, how would you, describe yourself going forward in terms of ... You still have an expertise and an understanding of the manufacturing requirements for cell-based therapies. How would you describe yourself going forward as far as that goes? And, I've got a follow-up question on the different programs, please.

David Mazzo:

Sure. Thanks, Steve. Appreciate your comments and thanks for joining. No. I think, you know, as I, as my introductory comments, indicated, we'll be describing ourselves as a, you know, pure-play cell therapy development company, one which we hope will have you know, a very attractive and promising pipeline of a variety of clinical programs a- and one I, I think that will be noted that will be, you know, still very conservative in the way that we deploy capital, even though we will now, you know, be in a in a much more favorable capital situation than the company has been maybe ever, but certainly over the course of the last several years.

Steve Brozak:

Actually, you just hit on the topic that I wanted to ask about. On the non-dilutive supports and grants, you probably have more collaborations than any other company, certainly any other, cell, cell therapy company. What do you think this is going to add as far as your ability to go out there and just focus on additional collaborations and the ability to go out there and raise additional funds on a non-dilutive basis?

David Mazzo:

Well, in some cases, our, our ability to attract some non-dilutive grants was hampered by our capital shortage, because in some cases -- not always, but in some cases -- the, the grantor requires a contribution to the program, a capital contribution from the company to which the grant was made. And, you know, in the past we've had such a shortage of capital that we weren't able to actually take care of that. Going forward now we'll be able to, you know, very carefully and judiciously decide how much of our capital that we may want to contribute to certain programs, but that will now open the door to a wide variety of, of grants, substantial grants, that we really couldn't consider in the past.

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Steve Brozak:	Well, again, congratulations on the transformation, and I look forward to all the results in 2017. Thank you.

David Mazzo:	Thank you, Steve.

Operator:	And your next question comes from the line of Robert LeBoyer with Aegis Capital. Your line is open.

Robert LeBoyer:

Good morning and congratulations on this transaction. My, my question has to do with the pipeline and some of the products that may be moving into clinical or advancing through more pre-clinical stages. There was a mention of Dr. Bluestone's work, and I was wondering if you could just briefly elaborate on that or any other products that you would call our attention to in order to get an idea what the pipeline looks like.

David Mazzo:	Sure. Thanks, Robert, and thanks for joining this morning. Appreciate you being on the line. So, the, the pipeline obviously will develop and, and mature, and we'll be able to provide, you know, a lot more specific information over the coming weeks. And I'll just add that a lot of what I'm about to say, you know, is contingent upon the closing of the transaction.

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Robert LeBoyer:	Okay. Great. Thanks. And just one other question about the transaction ... in terms of the assets that are being transferred, could you just specify which laboratories and the asset values that have been assigned to them?

David Mazzo:

I can give you the, you know, the general rule. I'm not sure that the values assigned to them is public, and I'll let Joe comment in a moment. But, but generally, the agreement defines or describes the acquisition of our 80.1% share of PCT by Hitachi Chemical. PCT comprises, two manufacturing facilities, one in Mountain View, California, which is a leased facility, and of course, all the personnel, equipment, and know-how that goes with that facility, and our flagship facility in Allendale, New Jersey, which is an owned facility, and all of the personnel, equipment, and know-how that goes with that. And so that's basically what, , what's being transferred at the closing of this.

Joseph Talamo:

Yeah. And, Robert, we'll, there'll be more clarity coming through. We, when we do put out our proxy statement, that will include the carve-out information, and provide a little more granularity around the operations of PCT that's being sold and the assets. For, for the most part our fixed assets, PP&E on the books, are largely, on the PCT side and, and that is going to be purchased by Hitachi with the remainder of this. So, you'll see that. The Allendale site, as you know, is owned, so that's going to go with the transaction as well. So, there'll be granularity that you'll, you'll be able to see once we put the proxy up.

Robert LeBoyer:	Okay, great. Thank you. You just anticipated my next question. So, I'll just thank you very much. And, congratulations, again.

David Mazzo:	Thanks, Robert.

Operator:	And your next question comes from the line of Yi Chen with H.C. Wainright. Your line is open.

Yi Chen:	Thank you for taking my questions. First question: just to clarify, you have already received 5 million from Hitachi and you expect to receive the rest, 70 million, in May. Is that correct?

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David Mazzo:

Hey, good morning and thanks for joining us. To be technically correct, the first 5 million is expected to be transferred today. You know, and so I haven't had a chance to speak with our treasury, function, so I don't know if the, if the wire has come through, but that's the agreement. Five million should, should arrive today and then the remainder arrives on the day or within a couple days of closing.

Joseph Talamo:	Yeah. And, and just one, one point: 5 million of the remainder, would be placed in escrow-

David Mazzo:	Right.

Joseph Talamo:	... for 12 months. So, 60 ... So, of the total 75 million, 70 million of that amount will be available to us on closing.

Yi Chen:	Okay. So, for the 2nd quarter of 2017 on your income statement you will still recognize part of the PCT revenue. Is that correct?

Joseph Talamo:

Yeah. So, so we have both a 1st quarter and a 2nd quarter, and this is scheduled to close in the 2nd quarter, and we would report the PCT operation through the closing date. We would expect beginning with the 1st quarter, that the PCT operations would be reported as discontinued operations, but we'll ... Clearly, the 10-K was filed last night and, and it is still as you've seen in the past. But effective with the 1st quarter, the presentation of all the PCT operations will be, it's likely to be collapsed into discontinued operations.

Yi Chen:	Okay. Thank you. Regarding the ongoing trial of CLBS03, before the interim data analysis, which can potentially reported in late 2017, do you still plan to report some initial biomarker analysis from the first cohort in near term?

David Mazzo:

We haven't yet decided on that, and one of the reasons why is that we are actually working on, on a partnership for the generation of that data that, you know, may affect the timing of when that information from the first cohort would actually be available for public consumption. So, I think that, you know, as we identify material or noteworthy information, that, you know, we can communicate, we certainly will do so.

Yi Chen:	Okay. Got it. So for the Phase 2 trial of CLBS12 in Japan, do you plan to fully fund that trial yourself, or do you, are you in the process of looking for some partnership in Japan?

David Mazzo:	We've actually had partnership discussions ongoing for a while with two categories of potential partners. One would be, I guess, under the general category of pharma companies, and the other in the general category of you know, venture capital, or something, or just financial capital.

Yi Chen:	Yeah.

David Mazzo:

And so, our plan is to initiate the trial using the, you know, using the capital proceeds, or a very small portion of the capital proceeds from the closing, and at least to plan to fund the trial through its first year and, and probably the first roughly third of the patient enrollment, although there's still a possibility that a partnership could be consummated that would allow us to minimize, or even, avoid any capital outlay ourselves.

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Yi Chen:	Got it. And this trial is likely to be started in the second half of 2017, right?

David Mazzo:	Yes, correct.

Yi Chen:	Okay. Got it. Thank you.

David Mazzo:	All right. Thanks.

Operator:	This concludes the question and answer portion of the presentation, and I will now turn the call back over to Dr. Mazzo for closing remarks.

David Mazzo:	Again, thank you all for participating on today's call. We look forward to making continued progress executing our new business strategy and to providing you with timely reports on our achievements. We appreciate your continued interest in and support of Caladrius Biosciences and look forward to updating you again on our next quarterly conference call. Have a great day, everyone. Bye bye.