FOR: IMMUNE NETWORK RESEARCH LTD.
VSE SYMBOL: IMM
MAY 20, 1998
Immune Network Research Corporate Update
VANCOUVER, BRITISH COLUMBIA--The Board of Directors of the Company
has appointed Mr. Dal Brynelson to the Board of Directors
following a decision to expand the Board to six members. Mr.
Brynelson brings many years of financing and corporate experience
to the Company and will be assisting in these areas. The Company
and its strategic partner, Immpheron, Inc., are now in the second
month of a six month second phase study of its proprietary
monoclonal antibody 1F7 in SHIV-infected macaque monkeys as a
model of HIV disease which is evaluating the effectiveness of mAb
1F7 as an adjuvant or therapeutic for human infection related to
the AIDS virus.
The Company has arranged to borrow $50,000 for corporate
operations while it reviews financing alternatives to expand the
study and acquire related biotechnology projects. The terms of
the loan from a shareholder require that the principal accrue
interest at the rate of 12 percent per year and that principal and
interest must be converted on the earlier of five years, or as
regulations permit, into common shares of the Company at a
conversion price of $0.15 per share.
The Board of Directors has granted Mr. Brynelson a stock option on
125,000 common shares and has amended existing stock options to
each of five existing directors to 250,000 common shares and to
the Corporate Secretary to 60,000 common shares. The terms for
all Company stock options are amended to five years at an exercise
price of $0.15 per share. These new and amended stock options are
subject to regulatory approval.
Agreement has been reached between several holders of escrow
shares to transfer some 2.2 million escrow shares among them to
Mr. Brynelson, subject to completion of the necessary
documentation and regulatory approval. The Annual General Meeting
of the Company has been called for June 29, 1998.
Victor J.E. Jones, President
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