S.R. ONE WARRANT EXERCISE ADDS $1.57 MILLION TO RIBI IMMUNOCHEM BALANCE SHEET
S.R. ONE WARRANT EXERCISE ADDS $1.57 MILLION
TO RIBI IMMUNOCHEM BALANCE SHEET
HAMILTON, Mont., Dec. 18 /PRNewswire/ -- Ribi ImmunoChem Research Inc. (NASDAQ: RIBI) announced today the exercise of warrants for 394,647 shares of its common stock by S.R. One, Ltd., the venture capital investment subsidiary of SmithKline Beecham. The warrant exercise by S.R. One represents an investment of $1.57 million in Ribi ImmunoChem and raises S.R. One's direct holding in Ribi ImmunoChem to approximately 11.1 percent of the company's outstanding shares.
In addition to the equity arrangement with S.R. One, Ribi ImmunoChem agreed in May 1991 to supply SmithKline Beecham with adjuvants for the development and potential commercialization of certain human and veterinary prophylactic infectious disease vaccines.
Of the warrants exercised, 94,647 were acquired in a private placement arrangement in June 1990 and were exercised at $5 per share. Of the remaining 300,000 warrants, which were acquired in a private placement arrangement in May 1991, 100,000 were exercised at $3 per share and 200,000 were exercised at $4 per share.
In the June 1990 private placement, S.R. One purchased 283,941 shares of Ribi ImmunoChem common stock for an investment of $1 million and received warrants to purchase 283,941 shares at $5 per share. In October 1991, S.R. One exercised one-third of the 1990 warrants as a result of Ribi ImmunoChem's common stock achieving an average price level of $6 per share for a specified period. Ribi ImmunoChem stock has since achieved an average price level of $7 per share for a specified period, which obligated S.R. One to exercise a second third of the 1990 warrants. S.R. One is obligated to exercise the remaining one-third of the 1990 warrants if Ribi's common stock achieves an average price level of $8 per share for a specified period.
S.R. One purchased an additional 566,667 units of stock and warrants for an investment of $1.7 million in May 1991. If S.R. One exercises its remaining warrants, its capital contribution to Ribi ImmunoChem would total approximately $6.3 million and it would hold approximately 13.7 percent of the company's then outstanding shares.
S.R. One, a $100 million fund, provides financing and management assistance to young, high-potential innovative health care and biomedical research companies.
Ribi ImmunoChem Research Inc., a biopharmaceutical company founded in 1981, is a leader in the development of immunostimulants for use in preventing and treating human and animal diseases.
/CONTACT; Vern D. Child, or Jeffrey S. McDowell, both of Ribi ImmunoChem Research Inc., 406-363-6214/
(RIBI) CO: Ribi ImmunoChem ST: Montana IN: MTC SU: 412 12-18-91 08:55 EST RM -- SE009 -- 3367 12/18/91 11:08 EST