Agreement With Transamerica Fixes Default for Equipment Loans
CARLSBAD, Calif., June 19 /PRNewswire-FirstCall/ -- As part of an effort
to solidify the Company's finances,
The Immune Response Corporation (Nasdaq: IMNR) announced today an agreement
with Transamerica Technology Finance Corporation (Transamerica) to restructure
its existing equipment loans, in effect curing the existing default under
those loans and limiting the circumstances which can serve as the basis for
any future default.
"We are pleased at our ability to work with Transamerica in reaching this
agreement, thereby fixing this default and continuing our efforts to solidify
the Company's finances," said Dr. Dennis Carlo, President and Chief Executive
Officer for The Immune Response Corporation. "It was in both companies'
interests to remedy this situation and move on."
The original equipment loan was used primarily to acquire equipment in the
Company's Pennsylvania manufacturing facility and was primarily collateralized
by the equipment on premises. The restructured agreement affects $1.5 million
of the Company's outstanding debt.
Pursuant to the agreements signed with Transamerica, the Company is
obligated to pay Transamerica milestone payments upon receipt by the Company
of proceeds from a certain number of financing activities. The payments would
reduce the Company's existing Transamerica debt. The Company also remains
obligated to make its scheduled debt payments to Transamerica until all the
debt and interest has been paid in full. Additionally, the Company granted to
Transamerica a security interest in the Company's assets, including its
intellectual property, subject to an existing security interest in the
intellectual property.
As the Company previously disclosed in its Form 10-Q filed with the
Securities and Exchange Commission, Transamerica had delivered the Company a
notice of an event of default under its equipment loans.
Co-founded by medical pioneer, Dr. Jonas Salk and based in Carlsbad,
California, The Immune Response Corporation is a biopharmaceutical company
developing immune-based therapies designed to treat HIV, autoimmune diseases
and cancer. The Company also develops and holds patents on several
technologies that can be applied to genes in order to increase gene expression
or effectiveness, making it useful in a wide range of therapeutic applications
for a variety of disorders. Company information also is available at
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 the Company will successfully raise
proceeds from financing activities, that Transamerica will not in the future
declare that the Company is in default of its debt arrangements, accelerate
the Company's debt and seize its assets, 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 and
report on Form 10-Q for the quarter ended March 31, 2002. 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
CONTACT:
Media, James Lee of The Lee Strategy Group,
+1-310-229-5771, fax +1-310-229-5772, jlee@leestrategy.com, for
The Immune Response Corporation; or Investors, Kathy Lane of The
Immune Response Corporation, +1-760-771-2236, fax
+1-760-771-2140, info@imnr.com
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