IMRE Corp.'s stock dropped 20 percent Tuesday after the companyannounced the resignations of two top officials and that it raised $1.5million in bridge financing.
The Seattle company said Tuesday that it raised $1.5 million throughthe sale of senior convertible debentures due July 1, 1996. Thedebentures shall automatically be converted to common stock thenext time IMRE has an equity financing of at least $2.5 million.
The debentures are convertible into common shares at the lesser of$1.50 or the price of the stock in the qualifying financing. That meansthat the bridge financing will result in at least 1 million new shares ofcommon stock for IMRE, which on Sept. 30, 1995, reported 17.7million shares outstanding.
IMRE's stock (NASDAQ:IMRE) fell 56 cents Tuesday to close at$2.25.
Last Friday, IMRE announced the resignations of Martin Cleary aschief executive officer, president, chief operating officer and director;and Harvey Hoyt as executive vice president and director. Bothresignations were effective Sunday night.
IMRE officials did not return calls from BioWorld Today.
Cleary and one assistant worked out of an office in Princeton, N.J.,while the company was in Seattle. Reached Tuesday Cleary said hesaw his resignation as "being somewhat evolutionary."
"I signed on at IMRE some 15 months ago and worked to putinfrastructure in place that would assure long-term success," Clearysaid. "The board of directors and I each felt senior managementneeded to be a resident of the West Coast."
Included in Cleary's contract was a stipulation that he wouldn't haveto relocate. Cleary said he has a commitment to the Princeton areaand will be seeking opportunities in the biotechnology or health careindustries there.
No reason was given for the resignation of Hoyt, who has been atIMRE about 18 months. IMRE said it no longer will maintain apresence in Princeton, and said it expected to fill the positions thismonth.
IMRE's lead product is its Prosorba column, a disposable filter thatuses protein A to remove circulating immune complexes from thebloodstream. It is approved for use in idiopathic thrombocytopenicpurpura, but the FDA declined to allow use of the device for immunethrombocytopenic purpura.
IMRE has an agreement with Baxter Healthcare Corp., of Deerfield,Ill, for marketing Prosorba. An amended agreement last year gaveIMRE $5 million cash in exchange for Baxter no longer beingobligated to minimum purchases in coming years. (See BioWorldToday, April 4, 1995, p. 3.)
The indications for which Prosorba is being developed includerheumatoid arthritis and prevention of kidney transplant rejection. n
-- Jim Shrine
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