SCOTTSDALE, AZ--(Marketwire - August 04, 2010) - ImmuneRegen BioSciences Inc.®, a wholly-owned subsidiary of IR Biosciences Holdings Inc. (OTCBB: IRBS), today announces the successful restructuring and reduction of debt totaling nearly $10 million.
The successful reorganization consists of two parts. First, approximately $3.6 million of debt with YA Global Investors, of which $1.5 million was callable as of December 2009, is now redated to December 31, 2011. Second, approximately $5.9 million of debt with Brencourt Advisors has been exchanged for company preferred stock, which is convertible to common stock at 30 cents per share, representing a premium to today's market price.
"This conversion of debt to equity and convertible debt is a huge demonstration of faith in our company's technology, team and long-term strategy to provide a favorable return to shareholders," said ImmuneRegen BioSciences Chief Executive Officer Michael K. Wilhelm. "Despite the company's limited funding, ImmuneRegen has continued to press ahead on the development of Homspera toward human studies and clinical development. We have been able to do so as a result of the great relationships fostered with companies such as MPI -- the world's third largest contract research organization -- as well as other committed investigators such as Jack Finkelstein of The University of Rochester. It has been a pleasure to work with YA Global and Brencourt and I appreciate their continued support of our company goals."
"When we originally invested in ImmuneRegen, our due diligence on the company's drug candidate resulted in a firm belief that it can deliver the ability to allow for multiple opportunities in treating many disorders," said David Resse, PhD with Brencourt Advisors. "Our investment allowed the company to move to the threshold of the clinic and we continue to support the company's technology and management as it advances toward greater value through program advancement, partnerships and collaborations. The company's recent success as a candidate for idiopathic pulmonary fibrosis and current focus in this market is exciting to me. Our conversion to equity which is subject to certain conditions, is the right move for our position and that of the shareholders as it provides the company with the ability to raise the additional funds required to move forward. It also serves as a validation for the company's technology and direction."
"The successful completion of this transaction allows the company to initiate human testing of our lead drug," Wilhelm added. "We are fortunate to have Brencourt and YA Global as shareholders. Their endorsement of our research by alleviating our debt burdened balance sheet is a testimonial to their belief in value of our science. On behalf of all shareholders and management we believe that this will add significant long term value to our company."
For more information about ImmuneRegen BioSciences, or their development status for Homspera, please check out their website at www.immuneregen.com
About Brencourt Advisors, LLC
Brencourt Advisors, LLC is an employee owned hedge fund sponsor. The firm provides its services to pooled investment vehicles. It invests in the public equity and hedging markets across the globe. The firm employs various strategies to make its investments. Brencourt Advisors was founded in January 2001 and is based in New York City with an additional office in London.
About Yorkville Advisors, LLC
Yorkville Advisors, LLC was founded in 2001 and has approximately 50 employees of which 20 are investment professionals. Our investment professionals have a wide range of expertise including Energy, Healthcare, Renewables, Media, Technology, Real Estate, Telecommunications, Consumer Products, and Natural Resources.
About MPI Research
MPI Research exists to provide comprehensive discovery, safety evaluation, bioanalytical, and analytical services that meet the requirements of biopharmaceutical, medical device, animal health, and chemical companies as we partner globally to bring safer and more effective products to the world. Our goal is to exceed the expectations of our Sponsors and maintain the highest respect in our industry by providing high-quality, on-time services that add value to our Sponsors' efforts to discover, develop, and enhance products in regulated international environments. We excel as a high-performance, high-quality organization because of our scientific knowledge and experience, integrity, trust, teamwork, and dedication to strong and enduring Sponsor relationships.
About ImmuneRegen BioSciences, Inc.
ImmuneRegen BioSciences Inc., a wholly-owned subsidiary of IR BioSciences Holdings, Inc. (OTCBB: IRBS), is a development-stage biotechnology company focused on the research, development and licensing of Homspera®.
Homspera is an adult stem cell active compound that in study results has been shown to regenerate and strengthen the immune system and enhance wound healing. It is being developed for potential use against infectious diseases as a stand-alone or combination therapy and as a vaccine adjuvant.
To advance its mission, the Scottsdale, Ariz.-based company has forged numerous study partnerships with industry and academic leaders, including University of Rochester, Radboud University, National Cancer Institute, Celgene Cellular Therapeutics, HemoGenix, Lovelace Respiratory Research Institute, University of Pittsburgh and MPI Research. For more information about the company please visit www.immuneregen.com.
Statements about the Company's future expectations, including statements about the potential use and scientific results for the Company's drug candidates, science and technology, and all other statements in this press release other than historical facts, are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and as that term is defined in the Private Securities Litigation Reform Act of 1995. The Company intends that such forward-looking statements be subject to the safe harbors created thereby. These future events may not occur as and when expected, if at all, and, together with the Company's business, are subject to various risks and uncertainties. The Company's actual results could differ materially from expected results as a result of a number of factors, including the uncertainties inherent in research and development collaborations, pre-clinical and clinical trials and product development programs (including, but not limited to the fact that future results or research and development efforts may prove less encouraging than current results or cause side effects not observed in current pre-clinical trials), the evaluation of potential opportunities, the level of corporate expenditures and monies available for further studies, capital market conditions, and others set forth in the Company's periodic report on Form 10-Q for the three months ended March 31, 2010 as filed with the Securities and Exchange Commission and report on Form 10-K for the year ended December 31, 2009 as filed with the Securities and Exchange Commission. There are no guarantees that any of the Company's proposed products will prove to be commercially successful. The Company undertakes no duty to update forward-looking statements.