MELBOURNE, Australia, April 28, 2020 (GLOBE NEWSWIRE) -- Immuron Limited (ASX: IMC; NASDAQ: IMRN), an Australian biopharmaceutical company focused on developing and commercializing oral immunotherapeutics for the treatment of gut mediated diseases, today announced that the cash payments of Board fees will be suspended and replaced with Immuron stock.
As announced to the market on 25 March, 2020 the Board and Executive Management reported that significant cost reductions measures have been implemented to preserve the Company’s cash position. As part of these measures, Immuron’s Board of Directors (‘the Board’) have resolved, for the foreseeable future, to relinquish cash payments of fees and in lieu of same receive common stock in the Company. The issue of these shares to Directors will be subject to obtaining the necessary approvals under the ASX Listing Rules, the Corporations Act and all other regulatory requirements.
At this stage, the Board proposes to issue such shares to Directors up to a value of AUD $250k and for these to have an issue price of AUD$0.08* which has been calculated as a premium to the 5 day VWAP from 25 March 2020.
In addition to the above issue of Shares, the Board, consistent with its remuneration policy has resolved to establish a pool of 9 million unlisted options (225,000 American Depository Securities (‘ADS’) equivalent when exercised) to be allocated among Directors. This will be subject to shareholder approval. The proposed exercise price of such options will be AUD$0.12* (per option calculated as 145% of the 5-day VWAP above). Such Options shall be exercisable within 48 months of the date of their issuance.
All necessary Shareholder approvals will be sought at the next Shareholders meeting of the Company.
Executive management has also been proactive in examining opportunities to supplement the Company’s cash reserves and, in this regard, has applied for the various funding schemes offered by the Australian and United States Governments to which the Company is entitled.
*1 ADS represent 40 ordinary shares / options equivalent when exercised.
COMPANY CONTACT:
Jerry Kanellos, Ph.D.
Chief Executive Officer
Ph: +61 (0)3 9824 5254
info@immuron.com