Immune Response redeems $1 million in principal of convertible note for stock

By Sheri Kasprzak

New York, Feb. 14 - Immune Response Corp. said it has redeemed $1,005,683 in principal of a secured convertible note for stock.

The company delivered 53,425,204 newly issued common shares to Cheshire Associates LLC to redeem $1,005,683.31 in principal of the notes and $62,820.77 in accrued interest.

Following the redemption, the maturity of the remaining principal has been extended to Jan. 1, 2009 from May 31, 2007. The conversion price was also dropped $0.02 from $0.70.

The company originally sold $5,740,928 in principal of the note to Cheshire.

The redemption triggered antidilution provision, requiring the company to drop the conversion price and warrant strike price connected to a convertible debenture sold to Cornell Capital Partners, LP.

The conversion price on the $500,000 debenture will now be $0.02, cut from $0.6315. The debentures are now convertible into 25 million common shares.

The warrants are now exercisable at $0.02 each, dropped from $0.924 each.

Based in Carlsbad, Calif., Immune Response is a biopharmaceutical company focused on immune-based therapies for HIV and multiple sclerosis.

The company's stock lost a penny Tuesday to close at $0.125 (OTCBB: IMNR).

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