[30,972] Form 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities and Exchange Act of 1934
For the period of September 2000
---------------------------------------------------------
Immune Network Ltd.
-----------------------------------------------------------------
(Translation of registrant's name into English)
3650 Wesbrook Mall, Vancouver, BC, V6S 2L2, Canada
----------------------------------------------------------------------
(Address of principal executive offices)
[Indicate by check mark whether the registrant files or will file annual
reports under cover Form 20-F or Form 40-F.
Form 20-F X Form 40-F
------ ------
[Indicate by check mark whether the registrant by furnishing the
information contained in this Form is also thereby furnishing the information to
the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of
1934.
Yes X No
------ ------
[If "Yes" is marked, indicate below the file number assigned to the
registrant in connection with
Rule 12g3-2(b): 82-
------------------
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
Immune Network Ltd.
----------------------------------
(Registrant)
Date October 20, 2000 By /s/Ronald G. Paton
---------------------- ----------------------------------
(Signature)*
Ronald G. Paton, Corporate Secretary
*Print the name and title of the signing officer under his signature.
<PAGE>
British Columbia QUARTERLY REPORT
Securities Commission Form 61
--------------------------------------------------------------------------------
INSTRUCTIONS
This report is to be filed by Exchange Issuers within 60 days of the end of
their first, second and third fiscal quarters and within 140 days of the end of
their fourth fiscal quarter. Three schedules (typed) are to be attached to this
report as follows.
SCHEDULE A: FINANCIAL INFORMATION
Financial information prepared in accordance with generally accepted accounting
principles for the fiscal year-to-year, with comparative information for the
corresponding period of the preceding fiscal year. This financial information
should consist of the following:
For the first, second and third quarters:
An interim financial report presented in accordance with Section 1750 of the
C.I.C.A. Handbook. This should include a summary income statement (or a
statement of deferred costs) and a statement of changes in financial position.
A summary balance sheet is also to be provided.
For the fourth fiscal quarter (year end):
Annual audited financial statements.
SCHEDULE B: SUPPLEMENTAL INFORMATION
The supplementary information set out below is to be provided when not included
in Schedule A.
1. For the current fiscal year-to-date:
Breakdown, by major category, of those expenditures and costs which are included
in the deferred costs, exploration and development expenses, cost of sales or
general and administrative expenses set out in Schedule A. State the aggregate
amount of expenditures made to parties not at arm's length from the issuer.
2. For the quarter under review:
(a) Summary of securities issued during the period, including date of issue,
type of security (common shares, convertible debentures, etc.) number, price,
total proceeds, type of consideration (cash, property, etc.) and commission
paid.
(b) Summary of options granted, including date, number, name of optionee,
exercise price and expiry date.
3. As at the end of the quarter:
(a) Particulars of authorized capital and summary of shares issued and
outstanding.
(b) Summary of options, warrants and convertible securities outstanding,
including number or amount, exercise or conversion price and
expiry date.
(c) Total number of shares in escrow or subject to a pooling
agreement.
(d) List of directors.
SCHEDULE C: MANAGEMENT DISCUSSION
Review of operations in the quarter under review and up to the date of this
report, including brief details of any significant event or transaction
which occurred during the period. The following list can be used as a
guide but is not exhaustive:
Acquisition or abandonment of resource properties, acquisition of fixed
assets, financings and use of proceeds, management changes, material
contracts, material expenditures, transactions with related parties,
legal proceedings, contingent liabilities, default under debt or other
contractual obligations, special resolutions passed by shareholders.
Specifically, the management discussion must include:
(a) disclosure of and reasons for any material differences in the
actual use of proceeds from the previous disclosure by the issuer
regarding its intended use of proceeds; and
(b) a brief summary of the investor relations activities undertaken by or
on behalf of the issuer during the quarter and disclosure of the
material terms of any investor relation arrangements or contracts
entered into by the issuer during the quarter.
Freedom of information and Protection of Privacy Act
The personal information requested on this form is collected under the authority
of and used for the purposes of administering the Securities
Act. Questions about the collection or use of this information can be
directed to the Supervisor, Statutory filings (604-660-4890), 1100-865 Hornby
Street, Vancouver, British Columbia V6Z 2H4. Toll Free in British Columbia
1-800-373-6393
================================================================================
Issuer Details Date of Report
Name of Issuer For Quarter Ended Y M D
IMMUNE NETWORK RESEARCH LTD. JUNE 30, 2000 00 08 29
--------------------------------------------------------------------------------
Issuer's Address
3650 WESBROOK MALL
--------------------------------------------------------------------------------
City Province Postal Code Issuer Fax No. Issuer Telephone No
VANCOUVER B.C. V6S 2L2 (604) 222-5542 (604) 222-5541
--------------------------------------------------------------------------------
Contact Person Contact's Position Contact Telephone No.
ALLEN BAIN PRESIDENT & CEO (604) 222-5541
================================================================================
CERTIFICATE
The three schedules required to complete this Quarterly Report are attached and
the disclosure contained therein has been approved by the Board of Directors. A
copy of this Quarterly Report will be provided to any shareholder who requests
it.
================================================================================
Director's Signature Print Full Name Date Signed
Y M D
/s/Allen I. Bain ALLEN I. BAIN 00 08 29
--------------------------------------------------------------------------------
Director's Signature Print Full Name Date Signed
Y M D
/s/Robert J. Gayton ROBERT J. GAYTON 00 08 29
================================================================================
<PAGE>
PAGE 1
IMMUNE NETWORK RESEARCH LTD.
INTERIM FINANCIAL STATEMENTS
JUNE 30, 2000
--------------------------------------------------------------------------------
IMMUNE NETWORK RESEARCH LTD.
Amalgamated under the Company Act of British Columbia
CONSOLIDATED BALANCE SHEETS
(unaudited - prepared by management)
(expressed in Canadian Dollars)
As at June 30
------------------------
2000 1999
ASSETS $ $
--------------------------------------------------------------------------------
Current
-------
Cash and cash equivalents $ 4,960,802 $ 748,974
Short-term investment - 100,000
Restricted investment 75,000 -
Amounts receivable 272,326 3,010
Government grants receivable 13,340 2,400
Deposits and prepaid expenses 129,131 6,843
--------------------------------------------------------------------------------
5,450,599 861,227
--------------------------------------------------------------------------------
Loan receivable 74,241 -
Deferred Charges 23,220 -
Capital assets 155,702 1,296
Intellectual properties 486,638 153,292
Investments 54,891 -
--------------------------------------------------------------------------------
$ 6,245,291 $ 1,015,815
--------------------------------------------------------------------------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current
Accounts payable and accrued liabilities $ 456,202 50,730
Current portion of obligations under capital lease 6,561 -
--------------------------------------------------------------------------------
462,763 50,730
Loan payable to shareholder - 50,000
Share subscriptions received - 794,102
Obligations under capital lease 29,302 -
Long-term debt 1,527,802 -
--------------------------------------------------------------------------------
2,019,867 894,832
--------------------------------------------------------------------------------
Shareholders' equity
Share capital 4,741,350 2,882,965
Shares to be issued - -
Special warrants 7,962,890 -
Deficit (8,478,816) (2,761,982)
--------------------------------------------------------------------------------
4,225,424 120,983
--------------------------------------------------------------------------------
$ 6,245,291 $ 1,015,815
--------------------------------------------------------------------------------
On behalf of the Board:
/s/Allen I. Bain /s/Robert J. Gayton
Allen I. Bain, Director Robert J. Gayton, Director
<PAGE>
IMMUNE NETWORK RESEARCH LTD.
INTERIM FINANCIAL STATEMENTS
JUNE 30, 2000
--------------------------------------------------------------------------------
IMMUNE NETWORK RESEARCH LTD.
CONSOLIDATED STATEMENTS OF LOSS AND DEFICIT
(unaudited - prepared by management)
(expressed in Canadian Dollars)
Six months ended
June 30
2000 1999
$ $
----------- -----------
REVENUE
Interest income $ 107,246 $ 1,425
EXPENSES
Research and development 4,497,100 11,209
General and administrative 523,790 78,226
Amortization 79,812 4,596
--------------------------------------------------------------------------------
5,100,702 94,031
--------------------------------------------------------------------------------
Loss for the period 4,993,456 92,606
Deficit, beginning of period 3,485,360 2,669,376
--------------------------------------------------------------------------------
Deficit, end of period $ 8,478,816 $ 2,761,982
--------------------------------------------------------------------------------
Loss per common share 0.166 0.004
--------------------------------------------------------------------------------
Weighted average number of
outstanding shares 30,041,831 20,902,383
--------------------------------------------------------------------------------
<PAGE>
IMMUNE NETWORK RESEARCH LTD.
INTERIM FINANCIAL STATEMENTS
JUNE 30, 2000
--------------------------------------------------------------------------------
IMMUNE NETWORK RESEARCH LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited - prepared by management)
(expressed in Canadian Dollars)
Six months ended
June 30
----------- -------------
2000 1999
$ $
----------- -------------
OPERATING ACTIVITIES
Loss for the period $ (4,993,456) $ (92,606)
Items not involving cash
Amortization 79,812 4,596
Amortization of deferred charges 2,580 -
--------------------------------------------------------------------------------
(4,911,064) (88,010)
----------- --------
Amounts receivable (255,474) (1,396)
Government grants receivable (7,604) (2,400)
Deposits and prepaid expenses (100,232) (6,843)
Accounts payable and accrued liabilities 144,639 (45,756)
Deferred charges (25,800) -
--------------------------------------------------------------------------------
Cash used in operating activities (5,155,535) (144,405)
--------------------------------------------------------------------------------
FINANCING ACTIVITIES
Proceeds from issuance of common shares 874,985 170,175
Issuance of special warrants 7,962,890 -
Share subscription received - 749,102
Long-term debt 1,527,802 -
Repayment (advance) of loan from (to) officer 32,213 -
Payment on obligations under capital lease (1,389) -
--------------------------------------------------------------------------------
Cash provided by financing activities 10,396,501 919,277
--------------------------------------------------------------------------------
INVESTING ACTIVITIES
Purchase of intellectual properties (209,064) (1,526)
Purchase of capital assets (63,922) (1,364)
Purchase of investment (24,995) -
Purchase of restricted investment (75,000) -
Sale (Purchase) of short-term investment 50,000 (100,000)
Purchase of convertible loan (74,241) -
--------------------------------------------------------------------------------
Cash used in investing activities (397,222) (102,890)
--------------------------------------------------------------------------------
Increase (decrease) in cash and
cash equivalents 4,843,744 671,982
Cash and cash equivalents, beginning
of period 117,058 76,992
--------------------------------------------------------------------------------
Cash and cash equivalents, end of period $ 4,960,802 $ 748,974
--------------------------------------------------------------------------------
<PAGE>
British Columbia QUARTERLY REPORT
Securities Commission Form 61
--------------------------------------------------------------------------------
INSTRUCTIONS
This report is to be filed by Exchange Issuers within 60 days of the end of
their first, second and third fiscal quarters and within 140 days of the end of
their fourth fiscal quarter. Three schedules (typed) are to be attached to this
report as follows.
SCHEDULE A: FINANCIAL INFORMATION
Financial information prepared in accordance with generally accepted accounting
principles for the fiscal year-to-year, with comparative information for the
corresponding period of the preceding fiscal year. This financial information
should consist of the following:
For the first, second and third quarters:
An interim financial report presented in accordance with Section 1750 of the
C.I.C.A. Handbook. This should include a summary income statement (or a
statement of deferred costs) and a statement of changes in financial position.
A summary balance sheet is also to be provided.
For the fourth fiscal quarter (year end):
Annual audited financial statements.
SCHEDULE B: SUPPLEMENTAL INFORMATION
The supplementary information set out below is to be provided when not included
in Schedule A.
1. For the current fiscal year-to-date:
Breakdown, by major category, of those expenditures and costs which are included
in the deferred costs, exploration and development expenses, cost of sales or
general and administrative expenses set out in Schedule A. State the aggregate
amount of expenditures made to parties not at arm's length from the issuer.
2. For the quarter under review:
(a) Summary of securities issued during the period, including date of issue,
type of security (common shares, convertible debentures, etc.) number, price,
total proceeds, type of consideration (cash, property, etc.) and commission
paid.
(b) Summary of options granted, including date, number, name of optionee,
exercise price and expiry date.
3. As at the end of the quarter:
(a) Particulars of authorized capital and summary of shares issued and
outstanding.
(b) Summary of options, warrants and convertible securities outstanding,
including number or amount, exercise or conversion price and
expiry date.
(c) Total number of shares in escrow or subject to a pooling
agreement.
(d) List of directors.
SCHEDULE C: MANAGEMENT DISCUSSION
Review of operations in the quarter under review and up to the date of this
report, including brief details of any significant event or transaction
which occurred during the period. The following list can be used as a
guide but is not exhaustive:
Acquisition or abandonment of resource properties, acquisition of fixed
assets, financings and use of proceeds, management changes, material
contracts, material expenditures, transactions with related parties,
legal proceedings, contingent liabilities, default under debt or other
contractual obligations, special resolutions passed by shareholders.
Specifically, the management discussion must include:
(a) disclosure of and reasons for any material differences in the
actual use of proceeds from the previous disclosure by the issuer
regarding its intended use of proceeds; and
(b) a brief summary of the investor relations activities undertaken by or
on behalf of the issuer during the quarter and disclosure of the
material terms of any investor relation arrangements or contracts
entered into by the issuer during the quarter.
Freedom of information and Protection of Privacy Act
The personal information requested on this form is collected under the authority
of and used for the purposes of administering the Securities
Act. Questions about the collection or use of this information can be
directed to the Supervisor, Statutory filings (604-660-4890), 1100-865 Hornby
Street, Vancouver, British Columbia V6Z 2H4. Toll Free in British Columbia
1-800-373-6393
================================================================================
Issuer Details Date of Report
Name of Issuer For Quarter Ended Y M D
IMMUNE NETWORK RESEARCH LTD. JUNE 30, 2000 00 08 29
--------------------------------------------------------------------------------
Issuer's Address
3650 WESBROOK MALL
--------------------------------------------------------------------------------
City Province Postal Code Issuer Fax No. Issuer Telephone No
VANCOUVER B.C. V6S 2L2 (604) 222-5542 (604) 222-5541
--------------------------------------------------------------------------------
Contact Person Contact's Position Contact Telephone No.
ALLEN BAIN PRESIDENT & CEO (604) 222-5541
================================================================================
CERTIFICATE
The three schedules required to complete this Quarterly Report are attached and
the disclosure contained therein has been approved by the Board of Directors. A
copy of this Quarterly Report will be provided to any shareholder who requests
it.
================================================================================
Director's Signature Print Full Name Date Signed
Y M D
/s/Allen I. Bain ALLEN I. BAIN 00 08 29
--------------------------------------------------------------------------------
Director's Signature Print Full Name Date Signed
Y M D
/s/Robert J. Gayton ROBERT J. GAYTON 00 08 29
================================================================================
<PAGE>
Page 1
IMMUNE NETWORK RESEARCH LTD.
SCHEDULE B: SUPPLEMENTAL INFORMATION
JUNE 30, 2000
--------------------------------------------------------------------------------
Section 1 - For the Fiscal Year-to-Date (January 1, 2000 to June 30, 2000)
a) Deferred costs - Patents, License and Technology
Accumulated Net Book
Cost Amortization Value
$ $ $
---------------------------------------------------------------------------
Technology 206,257 47,122 159,135
License 189,383 11,533 177,850
Patents 206,133 73,709 132,424
Trademark 18,136 907 17,229
---------------------------------------------------------------------------
619,909 133,271 486,638
---------------------------------------------------------------------------
b) Research and development expenditures
Six months ended
June 30
--------------------
2000
$
--------------------------------------------------------
Consulting 71,996
Laboratory, office and sundry 286,608
Salaries and benefits 151,636
Clinical trials 3,963,021
Contract research and collaboration 28,553
Travel 11,545
--------------------------------------------------------
4,513,359
Less grants (16,259)
--------------------------------------------------------
4,497,100
--------------------------------------------------------
<PAGE>
Page 2
IMMUNE NETWORK RESEARCH LTD.
SCHEDULE B: SUPPLEMENTAL INFORMATION
JUNE 30, 2000
--------------------------------------------------------------------------------
c) General and administrative expenditures
Six months ended
June 30
----------------------
2000
$
-----------------------------------------------------------------------
Administrative expenses
Advertising -
Consulting 39,477
Interest and bank charges 5,310
Legal, audit and accounting 153,903
Office supplies 62,072
Postage 4,723
Promotion and entertainment 55,971
Rent 7,960
Salaries and benefits 96,262
Securities, brokerage and transfer agent fees 31,251
Subscriptions 4,134
Telephone 16,578
Travel 46,149
-----------------------------------------------------------------------
Total 523,790
-----------------------------------------------------------------------
d). Aggregate amount of expenditures made to parties not at arm's length
from the issuer
I. During the six months ended June 30, 2000, the Company incurred $nil [six
months ended June 30, 1999 - $7,417] for consulting services rendered by
companies controlled by directors of the Company.
II. Legal fees of $61,597 were incurred during the six months ended June 30,
2000 [1999 $2,205] to a legal firm where one of the principals is an officer of
the company.
<PAGE>
Page 3
IMMUNE NETWORK RESEARCH LTD.
SCHEDULE B: SUPPLEMENTAL INFORMATION
JUNE 30, 2000
--------------------------------------------------------------------------------
Section 2 - For the quarter Under Review (April 1, 2000 to June 30, 2000)
a) Summary of securities issued during the quarter
i).
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------
Date of Type of Type of Number Price Total Type of Commission
Issue Security Issue Proceeds Consideration Paid
---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
13-Apr Common Shares Options 50,000 0.15 7,500 Cash NIL
20-Apr Common Shares Options 100,000 0.15 15,000 Cash NIL
17-May Common Shares Options 10,000 0.23 2,300 Cash NIL
18-May Common Shares Options 20,000 0.15 3,000 Cash NIL
18-May Common Shares Options 50,000 0.40 20,000 Cash NIL
23-May Common Shares Options 8,500 0.40 3,400 Cash NIL
2-Jun Common Shares Options 50,000 0.15 7,500 Cash NIL
6-Jun Common Shares Warrants 33,327 0.15 5,000 Cash NIL
14-Jun Common Shares Loan converted 200,000 0.25 50,000 Cash NIL
16-Jun Common Shares Options 5,000 0.40 2,000 Cash NIL
19-Jun Common Shares Warrants 1,867,000 0.15 280,050 Cash NIL
21-Jun Common Shares Warrants 647,000 0.15 97,050 Cash NIL
---------------------------------------------------------------------------------------------------------
Total 3,040,827 $ 492,800
---------------------------------------------------------------------------------------------------------
</TABLE>
b). Summary of options granted during the quarter
--------------------------------------------------------------------------------
Name of Optionee No. of Options Date of Grant Exercise Expiry
Price Date
--------------------------------------------------------------------------------
Rupinder Bagri 15,000 April 20.00 1.20 April 19.05
--------------------------------------------------------------------------------
Allen I. Bain 380,000 April 20.00 1.20 April 19.05
--------------------------------------------------------------------------------
Brian Conway 20,000 April 20.00 1.20 April 19.05
--------------------------------------------------------------------------------
Doug Gavinchuk 30,000 April 20.00 1.20 April 19.05
--------------------------------------------------------------------------------
Robert Gayton 50,000 April 20.00 1.20 April 19.05
--------------------------------------------------------------------------------
Nigel Horsely 30,000 April 20.00 1.20 April 19.05
--------------------------------------------------------------------------------
Mario Kasapi 50,000 April 20.00 1.20 April 19.05
--------------------------------------------------------------------------------
Heinz Kohler 20,000 April 20.00 1.20 April 19.05
--------------------------------------------------------------------------------
Danny Lowe 150,000 April 20.00 1.20 April 19.05
--------------------------------------------------------------------------------
Robert Mastico 50,000 April 20.00 1.20 April 19.05
--------------------------------------------------------------------------------
Barry Osborne 20,000 April 20.00 1.20 April 19.05
--------------------------------------------------------------------------------
James Pasieka 50,000 April 20.00 1.20 April 19.05
--------------------------------------------------------------------------------
Ronald G. Paton 100,000 April 20.00 1.20 April 19.05
--------------------------------------------------------------------------------
Greg Polyakov 20,000 April 20.00 1.20 April 19.05
--------------------------------------------------------------------------------
Donald Rix 50,000 April 20.00 1.20 April 19.05
--------------------------------------------------------------------------------
Steve Sacks 20,000 April 20.00 1.20 April 19.05
--------------------------------------------------------------------------------
Matt Sadler 15,000 April 20.00 1.20 April 19.05
--------------------------------------------------------------------------------
Pasquale Sasso 30,000 April 20.00 1.20 April 19,05
--------------------------------------------------------------------------------
Talieh Shahrokhi 10,000 April 20.00 1.20 April 19.05
--------------------------------------------------------------------------------
Michael Walker 25,000 April 20.00 1.20 April 19,05
--------------------------------------------------------------------------------
Stephanie Yip 5,000 April 20.00 1.20 April 19.05
--------------------------------------------------------------------------------
Total 1,140,000
--------------------------------------------------------------------------------
<PAGE>
Page 4
IMMUNE NETWORK RESEARCH LTD.
SCHEDULE B: SUPPLEMENTAL INFORMATION
JUNE 30, 2000
--------------------------------------------------------------------------------
Section 3 - As at the End of the Quarter (June 30, 2000)
a) Authorized capital and summary of shares issued and outstanding
Number Amount
of Shares $
--------------------------------------------------------------------------------
Balance at December 31, 1996 and 1997 19,970,452 2,602,790
Issued for cash pursuant to private placement 400,000 80,000
Issued for cash upon exercise of options 200,000 30,000
--------------------------------------------------------------------------------
Balance at December 31, 1998 20,570,452 2,712,790
Issued for cash pursuant to private placement 360,000 54,000
Issued for cash upon exercise of options 625,000 93,750
Issued for cash upon exercise of warrants 97,500 22,425
Issued for cash pursuant to private placement,
net of issuance costs of $9,576 6,286,513 933,400
--------------------------------------------------------------------------------
Balance at December 31, 1999 27,939,465 3,816,365
Issued for cash upon exercise of options 2,428,000 492,885
Issued for cash upon exercise of warrants 2,547,327 382,100
Issued via conversion of shareholder's loan 200,000 50,000
--------------------------------------------------------------------------------
Balance at June 30, 2000 33,114,792 4,741,350
--------------------------------------------------------------------------------
b) Summary of options, warrants and convertible securities outstanding
i). Share Purchase Warrants Outstanding
Common share purchase warrants outstanding are as follows:
Number of Exercise
Common Shares Price
Issuable $ Expiry Date
--------------------------------------------------------------------------------
3,739,186 0.18 July 13, 2001
2,120,000 0.15 and 0.17 January 23, 2001 and January 23, 2002
7,727,272 1.40 September 8, 2001
772,727 (1) 1.40 September 8, 2001
--------------------------------------------------------------------------------
14,359,185
--------------------------------------------------------------------------------
1 Assuming the agent exercises the Agent's Compensation Options.
ii) Special Warrants Outstanding
--------------------------------------------------------------------------------
Date of Type of Type of Number Price
Issue Security Issue
--------------------------------------------------------------------------------
24-Jan Special a Private 2,120,000 0.15
Warrants Placement
9-Mar Special b Private 15,454,544 0.55
Warrants Placement
<PAGE>
Page 5
IMMUNE NETWORK RESEARCH LTD.
SCHEDULE B: SUPPLEMENTAL INFORMATION
JUNE 30, 2000
--------------------------------------------------------------------------------
(a) Each warrant will be converted on the earlier of May 24, 2000, if the
Company has filed a current annual information form with the securities
commission, or January 24, 2001, into one unit which is comprised of one common
share and one purchase warrant. Each purchase warrant entitles the holder to
acquire one common share at $0.15 up to January 23, 2001 and at $0.17 up to
January 23, 2002.
(b) Each special warrant entitles the holder to receive, at no additional
cost, one unit which is comprised of one common share and half of one purchase
warrant. Each whole purchase warrant entitles the holder to acquire one common
share at $1.40 per share until September 8, 2001. The agent also received
Agent's Warrants entitling the agent to acquire, for no consideration, 1,545,454
Agent's Compensation Options. Each Compensation Option entitles the agent to
acquire one unit until September 8, 2001 at a price of $0.55 each. In the event
the Company does not receive a receipt for its final prospectus from the
applicable securities regulatory bodies by July 7, 2000, the holders of the
special warrants are entitled to receive 1.1 units for each special warrant.
iii) Stock Option Outstanding
Number of
stock options Exercise
outstanding Price
and exercisable $ Expiry Date
-------------------------------------------------------------------------
50,000 0.15 May 19, 2003
70,000 0.15 May 21, 2004
80,500 0.23 June 9, 2004
230,000 0.23 July 25, 2004
831,500 0.40 January 24, 2005
1,140,000 1.20 April 19, 2005
-------------------------------------------------------------------------
2,402,000
-------------------------------------------------------------------------
<PAGE>
Page 6
IMMUNE NETWORK RESEARCH LTD.
SCHEDULE B: SUPPLEMENTAL INFORMATION
JUNE 30, 2000
--------------------------------------------------------------------------------
Section 3 - As at the End of the Quarter (June 30, 2000)
c) Number of shares in escrow or subject to a pooling agreement
The Company has 5,566,667 common shares held in escrow.
d) List of Directors:
Dr. Robert J. Gayton
Dr. Allen I. Bain
Mr. Oh, Kim Sun, CA
Dr. Don B. Rix
<PAGE>
Page 1
IMMUNE NETWORK RESEARCH LTD.
SCHEDULE C: SUPPLEMENTAL INFORMATION
JUNE 30, 2000
--------------------------------------------------------------------------------
QUARTERLY REPORT TO SHAREHOLDERS -
FOR THE SIX MONTHS ENDED JUNE 30, 2000
FORM 61 - SCHEDULE C: MANAGEMENT DISCUSSION
The following information should be read in conjunction with the unaudited
consolidated financial statements included therein, which are prepared in
accordance with generally accepted accounting principles in Canada.
FINANCINGS
On August 10, 2000, the Company filed a final prospectus relating to the
distribution of 16,999,998 common shares and 8,499,999 common share purchase
warrants issuable upon the exercise of the 15,454,544 Special Warrants issued
previously, and up to 772,727 of the 1,545,544 agent's compensation options of
the Company issuable upon exercise of previously issued agent's special
warrants. Receipts of the final prospectus were issued by British Columbia,
Alberta, Ontario and Quebec securities commission on August 11, 2000.
On July 28, 2000 the Company announced that it has negotiated a private
placement of 727,273 units at $0.55 per unit, for gross proceeds of $400,000.
Each unit consists of one common share and one-half of one non-transferable
share purchase warrant. Each whole warrant will entitle its holder to purchase
one additional common share of the company at price of $1.40 for two years.
CORPORATE DEVELOPMENT
1. Originally announced on May 5, 2000, and on August 18, 2000 the Company
has completed its acquisition of an approximate two-thirds controlling interest
in BC Research Inc. ("BCR",www.bcresearch.com), a leading technology innovation
incubator. As payment for the BCR shares, the Company has issued 7,532,021
common shares and 7,532,021 Class A convertible preferred shares. These
securities are subject to resale restrictions including a hold period over the
common shares expiring at midnight on December 18, 2000.
BCR is a leading innovation integrator with approximately $7 million in annual
revenues. There are 370 people at the BC Research and Innovation Complex working
in 22 high-tech companies, including over 100 workers employed by BC Research
itself. The 185,000 square foot BC Research and Innovation Complex is located on
10 acres at the University of British Columbia, in Vancouver.
BCR consists of three major components: infrastructure, services, and a
technology incubator. BCR infrastructure provides lab and office space for
several public and private companies, including Nortran Pharmaceuticals Inc.,
<PAGE>
Page 2
IMMUNE NETWORK RESEARCH LTD.
SCHEDULE C: MANAGEMENT DISCUSSION
JUNE 30, 2000
--------------------------------------------------------------------------------
and Micrologix Biotech Inc. BCR's current services include specialized
laboratory testing, field studies, consulting, and applied research and
development. BCR's technology incubator has resulted in successful spin-offs,
including Azure Dynamics Inc. and Cellfor Inc. (formerly Silvagen Inc.).
2. On May 23, 2000, following receipt of positive initial laboratory test
results, the Company announced it was exercising its option on exclusive
licenses for MTCH-24 and Viraplex from Meditech Pharmaceuticals Inc. The
Company paid a licensing fee of $100,000 U.S. Immune Network's license will be
worldwide excluding the United States.
3. The Company has implemented a stock option plan (the "Plan"), in
accordance with the policies of the Canadian Venture Exchange, to attract,
retain and motivate directors, officers, employees and consultants and reward
them for their contributions to the long term goals of the Issuer and to enable
and encourage such persons to acquire Common Shares as long term investments.
The Plan was accepted by the Exchange on June 16, 2000, and approved by the
shareholders of the Issuer at its annual general meeting held on June 21, 2000.
The Plan will permit the issuance of stock options entitling the holders to
purchase up to a total of 6,622,958 Common Shares, inclusive of the 2,402,000
Common Shares that may be purchased upon the exercise of the outstanding stock
options as at June 30, 2000.
4. On August 16, 2000 the Company received the approval of all resolutions
presented at its re-convened annual general meeting. The resolutions passed
include offical change of the Company name from "Immune Network Research Ltd."
to "Immune Network Ltd." Also, by special resolution, the authorized share
capital of the Company was increased from one hundred million shares to a total
of two hundred million common shares without par value and 20 million Class A
convertible preferred shares with par value of $1.00 each. Class A convertible
preferred shares were created for the purpose of the acquisition of BC Research
Inc.
RESEARCH PROGRESS
AIDS Project (1F7)
In the quarter ended June 30, 2000 Immune Network continued research and
development activities in preparation for clinical testing of the 1F7 antibody
in humans.
Alzheimer Disease Project (AD2)
In the second quarter of 2000 Immune Network and CroMedica Global
carried out preparations for the international phase II clinical trial of the
company's Alzheimer disease drug candidate.
<PAGE>
Page 3
IMMUNE NETWORK RESEARCH LTD.
SCHEDULE C: MANAGEMENT DISCUSSION
JUNE 30, 2000
--------------------------------------------------------------------------------
Asthma Project (BP1)
Immune Network and Bridge Pharma announced that they were expanding
the scope of their joint venture, which was initially established in August 1999
to develop potential new treatments for asthma.
Bridge Pharma is contributing additional intellectual property and several new
compounds. The joint venture will also begin a program to study some of its
compounds for the treatment of atopic dermatitis (eczema). If the joint venture
proceeds into human clinical trials with two drug candidates,Immune Network will
contribute an additional US $1.5 million to the collaboration.
Atopic dermatitis, which may affect as many as 15 million Americans, is a
noncontagious hereditary allergic disease that causes chronic, and often
painful, inflammation of the skin.
In the quarter ended June 30, 2000 Immune Network and Bridge Pharma
continued laboratory studies on the asthma compounds towards the
selection of a clinical candidate.
APPOINTMENTS TO SCIENTIFIC ADVISORY NETWORK (SAN)
There were no additions to the SAN in the 2nd quarter.
FINANCIAL HIGHLIGHTS
Results of Operations
For the six months ended June 30, 2000, Immune Network incurred a net loss of $
4,993,456 or $0.166 per share. This compared to net loss for the six months
ended June 30, 1999 of $92,606 or $0.004 per share.
Research and development expenses, for the six months ended June 30, 2000 were
$4,497,100 as compared to $11,209 during the six months ended June 30, 1999.
Research and development expenses incurred in the first six months of 2000 were
primarily due to the costs associated with the research program of AIDS project
1F7 antibody and the Asthma BP1 project, and the phase II clinical trial cost of
the Alzheimer project. General and administrative expenses for the six months
ended June 30, 2000 were $523,790 as compared to $78,226 during the six months
ended June 30, 1999. Increase in general and administrative expenses was
primarily due to an increase in administrative staff and office space, costs
<PAGE>
Page 4
IMMUNE NETWORK RESEARCH LTD.
SCHEDULE C: MANAGEMENT DISCUSSION
JUNE 30, 2000
--------------------------------------------------------------------------------
associated with financing, and response to the Securities and Exchange
Commission's comment letter on Immune Network's Registration Statement on Form
20-F.
LIQUIDITY AND CAPITAL RESOURCES
Working Capital at June 30, 2000 was $4,987,836 (1999: $810,497). At June 30,
2000, the Company had $4,960,802 in cash and cash equivalents and short-term
investments (1999: $748,974).
INVESTOR RELATIONS
All investor relations activities were carried out by company personnel.
UNCERTAINTY DUE TO YEAR 2000
The Year 2000 issue arises because many computerized systems use two digits
rather than four to identify a year. Date-sensitive systems may recognize the
year 2000 as 1900 or some other date, resulting in errors when information using
year 2000 dates is processed. In addition, similar problems may arise in some
systems which use certain dates in 1999 to represent something other than a
date. Although the change in date has occurred, it is not possible to conclude
that all aspects of the Year 2000 Issue that may affect the entity, including
those related to customers, suppliers, or other third parties have been fully
resolved.
SUBSEQUENT ACTIVITIES
a] On August 9th, the Company added Dr. Bruce Dezube, Dr. Luc Montagne, and
Dr. John Salmon to the SAN.
<PAGE>
Canadian Venture Exchange
August 30, 2000
Maitland & Company
Barristers & Solicitors
700 - 625 Howe Street
Vancouver, BC
V6C 2T6
Attention: Ronald G. Paton
Dear Sirs\Mesdames*
Re. IMMUNE NETWORK LID. ("IMM")
Private Placement-Non-Brokered - Submission #56467
This is to confirm that the CDNX has accepted for filing documentation with
respect to a Non-Brokered Private Placement announced July 28, 2000:
Number of Shares: 727,273 shares
Purchase Price: $0.55 per share
Warrants: 727,273 non-transferable share purchase
warrants to purchase 363,636 shares
Warrant Exercise Price- $1.40 for a two years
Placees: Chatham Creative Inc 181,818
(Pasquale Sasso)
Lian Keng Enterprises Pte. Ltd. 145,454
(Dr. C.J. KHo, C.K. Kho, Ken Kho, &
Patrick C.T. Kho)
NORAM Engineering and
Constructors Ltd. 400,000
(George Cook, Alfred Guenket,
John Rae, & Tom Maloney)
These securities have not yet been issued. The Company must issue a news release
if the private placement does not close promptly.
<PAGE>
Canadian Venture Exchange
Maitland & Company
August 30, 2000
Page two
This fax will be the only copy you receive. Should you have any questions,
please contact the undersigned at (604) 643-6524 / FAX: (604) 844-7502 /
EMAIL: [email protected].
Yours truly,
?s/Colleen Chambers
Colleen Chambers
Analyst
Corporate Finance
CC\nl
cc, BC Securities Commission, Attention: Corporate Finance
Immune Network Ltd.
<PAGE>
FORM 27
SECURITIES ACT
MATERIAL CHANGE REPORT UNDER SECTION 85(1) OF THE ACT
Item 1. Reporting Issuer
----------------
Immune Network Ltd. (the "Issuer")
3650 Wesbrook Mall
Vancouver, BC V6S 2L2
Item 2. Date of Material Change
-----------------------
September 1, 2000
Item 3. Press Release
-------------
News Release dated September 1, 2000 was disseminated through Canada Stockwatch,
George Cross Newsletter and Market News.
Item 4. Summary of Material Change
--------------------------
The Issuer reports that it has closed a private placement to raise $400,000 by
the issuance of 727,272 units at a price of $0.55 per unit. The placement was
fully subscribed.
Item 5. Full Description of Material Change
-----------------------------------
The Issuer reports that it has closed a private placement to raise $400,000 by
the issuance of 727,272 units at a price of $0.55 per unit. The placement was
fully subscribed.
Each unit consists of one common share and one-half of one share purchase
warrant. Each whole share purchase warrant will entitle the holder to acquire
one additional common share at a price of $1.40 per common share until August
31, 2002.
The hold period applicable to the securities issued in this private placement
expires at midnight on December 25, 2000.
<PAGE>
Item 6. Reliance on Section 85(2) of the Act
------------------------------------
If the report is being filed on a confidential basis in reliance on Section
85(2) of the Act, state the reasons for such reliance.
Not applicable
Item 7. Omitted Information
-------------------
Not applicable
Item 8. Senior Officers
---------------
Allen Bain, President and Chief Executive Officer
Telephone: (604) 222-5541
Item 9. Statement of Senior Officer
---------------------------
The foregoing accurately discloses the material change referred to herein.
DATED at Vancouver, British Columbia, this 8th day of September, 2000.
IMMUNE NETWORK LTD.
Per: /s/Allen Bain
--------------------------------------
Allen Bain
President and Chief Executive Officer
<PAGE>
FOR IMMEDIATE RELEASE
IMMUNE NETWORK CLOSES STRATEGIC PRIVATE PLACEMENT AND SIGNS ALLIANCE AGREEMENT
-------------------------------------------------------------------------------
VANCOUVER, CANADA, September 1, 2000 -- Immune Network Ltd. (CDNX: IMM),
biotech's merchant developer, announced today that it has closed a private
placement to raise gross proceeds of $400,000. The securities issued in the
private placement, reported in Immune Network's news release dated July 28,
2000, are subject to a hold period expiring at midnight on December 25, 2000.
The net proceeds received by the company will be used to finance research and
development activities and for working capital.
Immune Network also reports that it has signed a Strategic Alliance Agreement
with Noram Engineering, one of the purchasers in the private placement. The
Agreement states a mutual commitment to enhance the value of BC Research Inc.
On August 21, 2000 Immune Network acquired approximately two thirds controlling
interest in BC Research, with Noram Engineering maintaining approximately one
third interest.
Dr. Allen Bain, President and CEO of Immune Network said, " This investment is
an indication of Noram Engineering's commitment and support of BC Research and
Immune Network. We believe we have a better way to build drugs and we are moving
aggressively forward in establishing Immune Network as the first biotech
merchant developer."
About Immune Network
--------------------
Immune Network identifies, acquires, rapidly facilitates the development of, and
profitably divests undervalued drug development projects with significant market
potential. Each project the company undertakes is based on sound science, has
protectable intellectual property and offers clearly identified opportunities
for swift development.
To learn more about Immune Network Ltd., biotech's merchant developer, please
visit our new website: www.immunenetwork.com
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of
-----------------------------------------------------------------------------
1995:
-----
This news release contains forward looking statements that are not historical
facts and are subject to risks and uncertainties which could cause actual
results to differ materially from those set forth in or implied herein. These
risks are described in detail in the company's Securities and Exchange
Commission filings.
<PAGE>
Media Contact: Ann Gibbs, Media Relations
Verlee Communications
Tel. (604) 970-5791
Email [email protected]
Company Contact: Ron Kertesz, Commercial Director
Immune Network Ltd.
3650 Wesbrook Mall, Vancouver, BC, Canada V6S 2L2
Tel. (604) 222-5541
Fax. (604) 222-5542
Internet http://www.immunenetwork.com
----------------------------
Email [email protected]
THE CANADIAN VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT
RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THE CONTENT OF THIS NEWS RELEASE
-30-
<PAGE>
This is the form required under section 139 of the Securities Regulation and, if
applicable, by an order issued under section 76 of the Securities Act.
FORM 20
Securities Act
Report of Exempt Distribution
(Please refer to the instructions before completing the information below.)
Report of a distribution of a security under section 74(2)(1) to (5), (8) to
(10), 11(i), (14), (16)(i), (18), (19) or (23) to (26) of the Securities Act,
S.B.C. 1996, c.418, or section 128(a), (b), (c) or (e) to (h) of the Securities
Rules, B.C. Reg. 194/97 or, if applicable, by an order issued under section 76
of the Securities Act.
1. Name, address and telephone number of the issuer of the security
distributed.
Immune Network Ltd. (the "Issuer")
3650 Wesbrook Mall
Vancouver, BC V6S 2L2
Telephone: (604) 222-5541
2. State whether the Issuer is or is not an exchange issuer (i.e. listed on
the Vancouver Stock Exchange, but not listed or quoted on any other stock
exchange or trading or quotation system in Canada).
The Issuer is an exchange issuer.
3. Describe the type of security and the aggregate number distributed.
727,272 units at a price of $0.55 per unit, each unit consisting of one
common share and one-half of one share purchase warrant. Each whole share
purchase warrant will entitle the holder to acquire one additional common
share at a price of $1.40 per common share until August 31, 2002.
4. Date of the distribution(s) of the security.
September 1, 2000
5. Specify the section(s) of the Act or Rules and, if applicable, the date of
the discretionary order or the blanket order number under which the
distribution(s) of the security was made.
Section 74(2)(4) and BOR 98/11
6. If the distribution(s) of the security was made to 50 purchasers or less,
circle and complete clause (a) of this section. If the distribution(s) of
the security was made to more than 50 purchasers, circle clause (b) of
this section:
(a)
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------
Full Name and Residential Number of Price Per Total Section of Act/Rules
Address of Purchaser Securities Share Purchase and if applicable, Date
Purchased (Canadian $) Price of Discretionary
(Canadian $) Order or Blanket
Order Number
----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Chatham Creative Inc. 181,818 0.55 100,000 Section
Suite 250, 1820 Fir Street 74(2)(4)
Vancouver, BC V6J 3B1 of the Act
----------------------------------------------------------------------------------------------
Lian Keng Enterprises
Pte Ltd. 145,454 0.55 80,000 BOR 98/11
#11 - 00 Lian Huat Building
163 Tras Street
Singapore 079024
----------------------------------------------------------------------------------------------
NORAM Engineering and
Constructors Ltd. 400,000 0.55 220,000 Section
Suite 400, 200 Granville 74(2)(4)
Vancouver, BC V6G 1S4 of the Act
----------------------------------------------------------------------------------------------
</TABLE>
(b) The Issuer has prepared and certified a list of purchasers comprising
the information required by clause (a) of this section and a certified true copy
of the list will be provided to the Commission upon request.
7. State the total dollar value (Canadian $) of the securities distributed by
the Issuer to purchasers resident in British Columbia in respect of which
this report is filed.
$320,000
8. State the name and address of any person acting as agent in connection with
the distribution(s) of the security, the compensation paid or to be paid to
the agent, and the name(s) of the purchaser(s) in respect of which the
compensation was paid or is to be paid.
--------------------------------------------------------------------------------
Name and Address Compensation Paid Price Per
of Agent (number and type of Share Name of Purchaser
security and/or cash (Canadian $)
amount (Canadian
--------------------------------------------------------------------------------
Not applicable
--------------------------------------------------------------------------------
<PAGE>
9. If the distribution of the security was made under section 128(a) of the
Rules, state the number of different purchasers who acquired any securities
of the Issuer under that section during the 12 month period preceding the
distribution of this security.
Not applicable
10. If the distribution was under section 128(h) of the Rules, state
(a) the number of different purchasers who acquired any securities of the
Issuer under that section during the 12 month period preceding the
distribution of this security, and
Not applicable
(b) the total dollar value (Canadian $) of all securities of the Issuer
distributed under that section (including the distribution of this
security), during the 12 month period preceding the distribution of
this security.
Not applicable
The undersigned hereby certifies that the statements made in this report are
true and correct.
DATED at Vancouver, British Columbia, this 8th day of September, 2000.
IMMUNE NETWORK LTD.
---------------------------------------
Name of Issuer (please print)
/s/Allen Bain
---------------------------------------
Signature of authorized signatory
Allen Bain
President and Chief Executive Officer
---------------------------------------
Name and office of authorized signatory
(please print)
IT IS AN OFFENCE FOR A PERSON TO MAKE A STATEMENT IN A RECORD REQUIRED TO BE
FILED OR PROVIDED UNDER THE SECURITIES ACT OR THE SECURITIES RULES THAT, AT THE
TIME AND IN LIGHT OF THE CIRCUMSTANCES UNDER WHICH IT IS MADE, IS A
MISREPRESENTATION.
<PAGE>
FOR IMMEDIATE RELEASE
IMMUNE NETWORK APPOINTS CHIEF FINANCIAL OFFICER
-----------------------------------------------
VANCOUVER, CANADA, September 21, 2000 -- Immune Network Ltd. (CDNX: IMM),
biotech's merchant developer, announced today the appointment of David Goold,
C.A., as Chief Financial Officer (CFO).
Goold, 45, brings a wealth of experience to this position. For the last two
years, his experience as the CFO and Vice President of BC Research Inc. (BCR)
has consisted of the direct involvement in the development of two new corporate
spin-offs from the BC Research Innovation Division. Goold brings to Immune
Network experience in strategic management and finance operations. As CFO for
Immune Network, he will greatly enhance Immune Network's existing capabilities
in these areas.
Prior to joining BCR, Goold worked for nine years with Price Waterhouse as a
Manager in Audit and Small Business Practices. Other previous positions
included Vice President of Finance for the TSE-listed company AimGlobal
Technologies Inc., (formerly known as AIM Safety Company Inc.) and Controller,
Director of Finance and Consultant for various global divisions of Patagonia, an
international sportswear firm. Goold has also held the position of CFO for
Silvagen Inc., a successful spin-off company arising from BC Research.
Goold will maintain his position as CFO and Vice President of BCR where he has
been responsible for overseeing the overall financial operations of BCR and its
subsidiaries. He is also currently serving as Vice President of Finance for
Azure Dynamics Inc., another subsidiary of BCR.
"David's joint role as CFO for BC Research and Immune Network provides an ideal
association that will help our team achieve its vision for both corporations and
will maximize the return on investment for our assets," said Dr. Allen Bain, CEO
of both Immune Network and BC Research. "We see Immune Network and BC Research
at the centre of the explosion of technology on the west coast of Canada. "
About Immune Network
--------------------
Immune Network identifies, acquires, rapidly facilitates the development of, and
profitably divests undervalued drug development projects with significant market
potential. Each project the company undertakes is based on sound science, has
<PAGE>
protectable intellectual property and offers clearly identified opportunities
for swift development.
To learn more about Immune Network Ltd., biotech's merchant developer, please
visit our new website: www.immunenetwork.com
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of
-----------------------------------------------------------------------------
1995:
-----
This news release contains forward looking statements that are not historical
facts and are subject to risks and uncertainties which could cause actual
results to differ materially from those set forth in or implied herein. These
risks are described in detail in the company's Securities and Exchange
Commission filings.
/s/Allen I. Bain
-------------------
Allen I. Bain
President & CEO, Immune Network Ltd.
Media Contact: Ann Gibbs, Media Relations
Verlee Communications
Tel. (604) 970-5791
Email [email protected]
Company Contact: Ron Kertesz, Commercial Director
Immune Network Ltd.
3650 Wesbrook Mall, Vancouver, BC, Canada V6S 2L2
Tel. (604) 222-5541
Fax. (604) 222-5542
Internet http://www.immunenetwork.com
----------------------------
Email [email protected]
THE CANADIAN VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT
RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THE CONTENT OF THIS NEWS RELEASE
-30-
<PAGE>
IMMUNE NETWORK LTD.
FOR IMMEDIATE RELEASE
BC RESEARCH ANNOUNCES EQUITY FINANCING FOR
------------------------------------------
AZURE DYNAMICS INC.
-------------------
VANCOUVER, CANADA, September 26, 2000 - BC Research Inc. announced today that
Azure Dynamics Inc., a world leader in hybrid electric vehicle (HEV)
technologies (www.azuredynamics.com), has arranged a $1.5 million equity
financing.
Azure was founded in 1997 by Immune Network's technology incubator, BC Research
Inc. Azure is commercializing an adaptive hybrid electric drivetrain control
technology it believes will replace conventional engine-transmission drivetrains
in road vehicles. Today's announced financing enables Azure to complete a test
conversion contract for a major national commercial fleet of short haul delivery
vehicles.
"We are proud of the initial success of this BC Research spin off company. BC
Research has many different technologies, both biotech and non-biotech, that
will be commercialized in the months and years to come," said Dr. Allen Bain,
CEO of Immune Network and BC Research. "Azure's progress is another example of
the capability - in business and in technology - that will allow BC Research to
be at the center of technology innovation in Western Canada."
HEVs are becoming the dominant alternative fuel technology with Honda and Toyota
introducing new vehicle lines that are currently selling tens of thousands
around the world. Ford has announced it will sell the Escape as a hybrid in
2003, while General Motors will sell a full hybrid electric pick-up in 2004.
Azure's entry niche is in the delivery vehicle market and it has contracted with
a major fleet to deliver a modified vehicle for demonstration early next year.
Unlike pure electric vehicles, HEVs maintain acceptable performance while
reducing fuel consumption and emissions.
Dr. Nigel Fitzpatrick, President of Azure Dynamics said, "Azure's patented
adaptive control technology is applicable to all vehicle classes and all
combinations of batteries, ultracapacitors, fuel cells, engines and turbines
that will appear in present and future hybrid electric vehicles."
<PAGE>
Immune Network Ltd. (CDNX: IMM) is the world's first biotech merchant developer.
Its subsidiary, BC Research Inc., is a biotech and general technology services
and incubator company. To learn more about Immune Network Ltd. and BC Research
Inc., please visit our websites: www.immunenetwork.com and www.bcresearch.com.
--------------------- ------------------
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of
------------------------------------------------------------------------------
1995:
-----
This news release contains forward looking statements that are not historical
facts and are subject to risks and uncertainties which could cause actual
results to differ materially from those set forth in or implied herein. These
risks are described in detail in the company's Securities and Exchange
Commission filings.
Media Contact: Ann Gibbs, Media Relations
Verlee Communications
Tel. (604) 970-5791
Email [email protected]
Company Contact: Ron Kertesz, Commercial Director
Immune Network Ltd.
3650 Wesbrook Mall, Vancouver, BC, Canada V6S 2L2
Tel. (604) 222-5541
Fax. (604) 222-5542
Internet http://www.immunenetwork.com
----------------------------
Email [email protected]
THE CANADIAN VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT
RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THE CONTENT OF THIS NEWS RELEASE
-30-
<PAGE>
