To All:
Innovir Laboratories Announces $7 Million Funding Agreement with VIMRX
NEW YORK---(BUSINESS WIRE)--January 12, 1998--Innovir Laboratories, Inc. (Nasdaq SmallCap: INVR) today announced that its majority owner, VIMRX Pharmaceuticals Inc. (Nasdaq: VMRX), purchased 5.1 million shares of Innovir common stock, providing a cash investment of $2 million to fund Innovir's operations and research and development programs. The common stock was priced at $0.39 per share, based on the average closing bid price for the 15 trading days prior to December 31, 1997. This transaction increases VIMRX's ownership of Innovir to 71%.
Further, VIMRX has agreed to purchase up to $5 million in additional stock, if requested by Innovir. The additional stock will be priced at the current market value when Innovir calls for the money or $1.30 per share, whichever is lower. As part of the agreement, VIMRX will receive 1 million warrants priced at $0.39 per share with a term of five years.
"This funding agreement is further evidence of Innovir and VIMRX's commitment to the development of oligozyme technology for genomic and pharmaceutical research, and for the diagnosis and treatment of diseases," said Thomas R. Sharpe, Ph.D., Innovir President and Chief Executive Officer. "Innovir is currently focusing its research, reducing its burn rate, and seeking corporate partnerships which offer the potential to generate future revenue and would minimize our need for additional funds."
Innovir Laboratories, Inc. is a biotechnology company that has been developing technologies based on catalytically interactive oligomers (oligozymes), for pharmaceutical and genomic research and also for the treatment and prevention of diseases. As a research aid, oligozymes hold potential both to identify how different genes function and to identify and validate molecular targets for new drug therapies. The Company's technologies utilize either External Guide Sequences (EGS) oligozymes - which inactivate targeted messenger RNA (mRNA) through activity of the cellular enzyme RNase P - or RILON(TM) oligozymes, which inactivate targeted mRNA directly. To complement its therapeutic and drug target validation programs, Innovir has developed a unique drug delivery tool called InnoPhor(TM) that makes it possible to target oligozymes to specific tissues.
The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for certain forward-looking statements. The forward- looking statements contained in this release are subject to certain risks and uncertainties. Actual results could differ materially from current expectations. Among the factors which could affect the Company's actual results and could cause results to differ from those contained in the forward-looking statements contained herein are the success of the Company's research and the development of competing therapies and/or technologies by other companies. -0- NOTE TO INVESTORS AND EDITORS: Innovir's press releases are available on the Internet through VIMRX Pharmaceutical Inc.'s web site at www.vimrx.com and through BusinessWire's web site, under the VIMRX heading, at businesswire.com. The releases also are available at no charge through BusinessWire's fax-on-demand service at 800-411-8792.
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CONTACT: Media Contact: Laura A. Mastrangelo
VIMRX Pharmaceuticals
302/998-1734
or
Contact:
Dian Griesel, Ph.D.
The Investor Relations Group
(212) 664-8489 |
