Immune Response already gets $4.1M from placing

California, USA-based Immune Response Corp says that its registration statement for the resale of common stock underlying the convertible notes and warrants issued in the company's March private placement financing was declared effective June 13 by the Securities and Exchange Commission. In this, the company issued $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% a year and mature on January 1, 2008. Investors also received warrants to purchase an aggregate of 1.20 billion shares at $0.02 each; these warrants, if fully exercised, would generate an additional $24.0 million in gross proceeds for the company. The warrants are divided into two 600 million tranches.

Investors have, in fact, already exercised 205 million warrants to generate $4.1 million of the potential $12.0 million in gross proceeds from the first tranche. The remaining 395 million warrants expire 45 days following notification to the warrant holders of the June 13 resale registration of the shares underlying the warrants. The second tranche of warrants (600 million) becomes exercisable 70 days after the expiration of the first and expires 45 days after they become exercisable.