BASKING RIDGE, N.J., March 4, 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, its largest secured creditor, agreed to subordinating $3,400,000 of Senior Secured Debt upon the receipt of new financing.
Additionally in a separate agreement, the largest senior secured creditor has entered into a Contract Services Agreement pursuant to which they will represent the Company in certain identified institutional channels, such as Long-Term Care, U.S Veterans Administration and U.S. Department of Defense. Pursuant to the terms of this Services Agreement Millennium will repay the creditor 20% of the net profits directly related to revenue generated from their clients under the terms of the Agreement. The payments will be applied to the existing debenture due to the creditor which now extends through January 31, 2012.
Mark C. Mirken, CEO and Chairman of the Board stated, "This initial financial repositioning is critical to our proposed capital raise. We are actively working to secure sufficient additional capital to convert the Company's debt and subsequently right size its capital structure. As a first step, the Company's largest secured debt holder has agreed to subordinate its debt to our capital raise now in process. We are now at a place in the Company's development which requires such actions on behalf of our stakeholders. The institutional sales commitment from our largest secured creditor, in addition to this restructuring, only reinforces the quality and superiority of our clinically proven nutritional products and their belief that there will be a number of channels, including Long-Term Care and governmental agencies which will be highly receptive to the Company's products.
"Millennium's management believes this strategic restructuring is in the best interest of all its stakeholders, as opposed to other significantly dilutive and/or negative options understandable in these extremely challenging times."
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 the Millennium's technology, opportunities for the 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 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-KSB, 10-QSB, 8-K, and other forms filed with the Securities and Exchange Commission ('SEC').