Dave
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IMNR is an example of why people lose faith in being investors. Wish you success in figuring out what to do with this one-----I have no idea. Stock was up today. Only reason I can see is they have new money. Wish I had all of the money that investors have lost on this one. mj
March 7, 2006
The Immune Response Corporation Completes $8 Million Financing
Carlsbad, California - March 7, 2006 - The Immune Response Corporation (OTCBB: IMNR.OB) announced today that it has completed a private placement of $8.0 million of secured notes which are convertible into 400,000,000 shares of common stock at $0.02 per share. The secured convertible notes accrue interest at 8% per year and mature on January 1, 2008. Investors also received warrants to purchase an aggregate of 1,200,000,000 shares of common stock at $0.02 per share which have the potential to generate an additional $24 million in gross proceeds. The first tranche of these warrants (600,000,000) expires the later of May 31, 2006, or 45 days following the registration of the shares underlying the warrants. The second tranche of these warrants (600,000,000) become exercisable 70 days after the expiration of the first tranche of the warrants and expire 45 days after they become exercisable. None of these derivative securities will be able to be converted into or exercised for common stock until the Company obtains stockholder approval to significantly increase its authorized number of shares of common stock.
"This offering puts us in a much stronger financial position, giving us immediate capital to pursue our business and clinical strategy," said Michael K. Green, Chief Operating Officer and Chief Financial Officer. "More importantly, the $24 million potential additional proceeds from the two tranches of warrant exercises during 2006 could provide us with long-term capital to complete important phase II clinical trials over the next two years."
Proceeds from the financing will be used to fund the Company's ongoing and planned clinical activities and for general corporate purposes. Spencer Trask Ventures, Inc., an affiliated entity of two of the Company's directors, served as the exclusive placement agent for the transaction. |
