CARLSBAD, Calif.--(BUSINESS WIRE)--March 7, 2006--The Immune Response Corporation (OTCBB:IMNR) 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.
