CARLSBAD, Calif., July 8 /PRNewswire-FirstCall/ --
The Immune Response Corporation (Nasdaq: IMNR) announced today its current
intention to not implement a previously authorized one-for-four reverse stock
split and to instead submit an application to the Nasdaq Stock Market(R) to
move the Company's listing from the Nasdaq National to the SmallCap Market.
In a meeting of the Company's board of directors, the board indicated that
it currently does not intend to implement the one-for-four reverse stock split
recently authorized at the annual meeting of the Company's stockholders. The
split originally was contemplated as a possible tool to avoid delisting from
the Nasdaq National Market by attempting to raise the Company's current stock
price above $1 per share for 10 consecutive trading days prior to July 24,
2002 as required by Nasdaq.
Instead, the Company intends to submit to Nasdaq an application to move
its stock listing from the Nasdaq National to the Nasdaq SmallCap Market under
interim rules adopted on January 2, 2002, by Nasdaq. Such rules allow for a
180-day grace period for companies whose stock price was below the $1 minimum
threshold. With the grace period, the Company would have until October 24,
2002 to achieve the stock price minimum. If the Company's application is
approved and it does not achieve that minimum, it could request an additional
180-day grace period, which, if granted, would extend the period until April
24, 2003, if the Company had either equity of $5 million or a market
capitalization of $50 million.
"The board and management are committed to moving ahead with plans to
improve the Company's financial position," said Dr. Carlo, president and chief
executive officer of The Immune Response Corporation.
The original deadline for possible delisting from Nasdaq is July 24, 2002.
Co-founded by medical pioneer Dr. Jonas Salk and based in Carlsbad,
Calif., 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 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's application for listing
on the Nasdaq SmallCap Market will be approved by the Nasdaq and, if so,
whether the Company can continue to meet the Nasdaq listing requirements
including the minimum price per share and the minimum stockholders' equity
amount, the adverse consequences of a Nasdaq SmallCap listing on the
liquidity, trading volume and volatility of the Company's common stock and the
number of market makers willing to trade in the Company's common stock, and
the potential need of the Company to implement in the near future a reverse
stock split pursuant to the authority granted to the board of directors at the
Company's 2002 annual meeting of stockholders . These and other risks 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 (as amended) 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.
NOTE: 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, or fax, +1-310-229-5772, or
jlee@leestrategy.com, for The Immune Response Corporation; or
investors, Kathy Lane of The Immune Response Corporation,
+1-760-771-2236, or fax, +1-760-771-2140, or info@imnr.com
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