BASKING RIDGE, N.J., Nov. 16, 2009 (GLOBE NEWSWIRE) -- Millennium Biotechnologies, Inc. a wholly owned subsidiary of Millennium Biotechnologies Group, Inc. (OTCBB:MBTG), a leader in the development, manufacturing and sales of targeted nutritional products in the Clinical and Sports Nutrition Markets, announced today that it has completed a recapitalization and elimination of over $14,000,000 of the current liabilities.
As part of the recapitalization plan, certain creditors have converted over $7,000,000 of current debt into shares of convertible Series E Preferred stock of Millennium Biotechnologies Group, Inc. (the "Company") at $0.035 per common share, issuable upon conversion of the Series E Preferred. As such, the Company will realize non-cash gains of approximately $3,400,000 from the elimination and write down of approximately $4,000,000 of senior secured debt. Additionally, in conjunction with the recapitalization plan, the Company raised gross proceeds in excess of $1,300,000 in a private placement with investors, all of whom were "accredited investors" under the Securities Act of 1933, as amended. The Company issued Series F Preferred to new investors in addition to secured promissory notes. The Series F Preferred converts into common stock on a 120,000-for-1 basis. Conversion of both Series E Preferred and Series F Preferred can occur only if and when the Company's stockholders approve an increase in the number of authorized shares of common stock.
CEO Mark Mirken noted, "This recapitalization is the culmination of over 15 months of restructuring efforts. Clearly, the Company overcame insurmountable odds in the face of one of the worst economic downturns and was able to raise capital and eliminate debt while aligning current stakeholder interests without bankrupting the Company. With this restructuring behind us, the Company is finally in position to execute on the business opportunities that have been incubating over the previous 12 months that we believe will leverage our intellectual property, drive revenue and enhance shareholder value."
Mr. Mirken further thanked Brian Corbman of Ardent Advisors, LLC, who has been instrumental in structuring and financing the recapitalization, as well as Tripoint Global Equities LLC, who acted as placement agent for the private placement and is expected to continue to advise Millennium going forward.
About Millennium
Millennium's six marketed products form an advanced line of nutritional formulas. Resurgex Select(R) is a whole foods-based, calorically dense, high-protein nutritional formula developed for cancer patients undergoing chemotherapy or radiation treatments. Resurgex(R) and Resurgex Plus(R) are specialized, anabolic nutritional supplements rich in antioxidants that provide nutritional support post-treatment. Millennium also created Surgex(TM) sports nutrition formula to address the nutritional concerns of professional, Olympic, and amateur elite athletes. These athletes often experience similar symptoms post-workout to those battling immuno-compromised conditions, such as fatigue, loss of lean muscle, oxidative stress, and reduced immune function. Resurgex Essential(TM) and Resurgex Essential Plus(TM) are comprehensive, calorically dense formulas that meet and succeed the nutritional requirements of the assisted living community.
Statements in this news release regarding future financial and operating results, future growth in R&D programs, potential applications of Millennium's technology, opportunities for Millennium, and any other statements about the future expectations, beliefs, goals, plans, or prospects expressed constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any statements that are not statements of historical fact (including statements containing the words "will," "believes," "plans," "anticipates," "expects," "estimates," and similar words or expressions) should also be considered to be forward-looking statements. There are a number of important factors that could cause actual results or events to differ materially from those indicated by such forward-looking statements, including: limited operating history, need for future capital, risks inherent in the development and commercialization of potential products, protection of Millennium's intellectual property, and economic conditions generally. Additional information on potential factors that could affect results and other risks and uncertainties are detailed from time to time in Millennium's periodic reports, including Forms 10-K, 10-Q, 8-K, and other forms filed with the Securities and Exchange Commission.