CARLSBAD, Calif., May 7 /PRNewswire-FirstCall/ --
The Immune Response Corporation (Nasdaq: IMNR) announced today that it
privately placed a $4,000,000 convertible note and warrant to Oshkim Limited
Partnership (Oshkim). The investment was made pursuant to the Note Purchase
Agreement which the Company and Kevin Kimberlin Partners, L.P. (KKP) entered
into on November 9, 2001, and was amended February 14, 2002 to add Oshkim as
an investor. Both investors are controlled by Kevin Kimberlin, a director and
major stockholder of the Company.
The convertible note bears interest at a rate of 8% per year. The note,
secured by certain of the Company's intellectual property, matures on May 3,
2005, but is convertible into shares of the Company's Common Stock, at any
time at the option of the investor, at a discounted conversion price. The
warrant, for 9,276,437 shares of the Company's Common Stock, is exercisable at
a price of $0.54 per share, which is equal to the average of the closing bid
prices of the Common Stock for the ten consecutive trading days immediately
preceding the closing.
Proceeds of approximately $2 million were used to repay the short-term
secured promissory note issued on March 20, 2002 plus interest, which was due
May 5, 2002. The Company estimates that its available cash resources along
with the remaining $2 million from this note and warrant will be sufficient to
fund its planned operations into June 2002. Additional funds will be required
to fund the Company's operations beyond such time. The Company is actively
pursuing other potential funding options. The Company plans to use
substantially all of the net proceeds from the transaction for working capital
and other general corporate purposes.
The Immune Response Corporation is a biopharmaceutical company based in
Carlsbad, California, developing immune-based therapies to induce specific
T-cell responses for the treatment of HIV, autoimmune diseases and cancer. In
addition, the Company is developing a targeted non-viral delivery technology
for gene therapy, which is designed to enable the delivery of genes directly
to the liver via intravenous injection. [NOTE: Company information can also
be located on the Internet Web Site: http://www.imnr.com ]
This news release contains forward-looking statements. Actual results
could vary materially from those expected due to a variety of risk factors,
including, but not limited to, whether data generated from previous trials can
be replicated in future clinical trials, whether clinical trials will be
successfully concluded, whether REMUNE(R) will be approved for marketing or be
successfully commercialized and whether the Company will be able to obtain
additional financing. Those factors are discussed more thoroughly in The
Immune Response Corporation's SEC filings, including but not limited to its
report on Form 10-K for the year ended December 31, 2001. The Company
undertakes no obligation to publicly release the result of any revisions to
these forward-looking statements, which may be made to reflect events or
circumstances after the date hereof or to reflect the occurrence of
unanticipated events.
REMUNE(R) is a registered trademark of The Immune Response Corporation.
SOURCE The Immune Response Corporation
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Related links:
http://www.imnr.com
Company News On-Call:
http://www.prnewswire.com/comp/434675.html
CONTACT:
Investors, Kathy Lane for The Immune Response
Corporation, +1-760-771-2236
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