[Logo of MyRichUncle]
For immediate release
MRU HOLDINGS, INC., A STUDENT LOAN FINANCE COMPANY, SECURES $25 MILLION EQUITY
FINANCING COMMITTMENT FROM BATTERY VENTURES AND MERRILL LYNCH INVESTMENT
MANAGERS PRIVATE EQUITY PARTNERS TO EXPAND ITS PRIVATE STUDENT LOAN PROGRAM
New York, NY: January 5 --
MRU Holdings, Inc. (OTCBB: MHOI.OB), an educational finance company, today
announced that it has entered into a definitive securities purchase agreement
with Battery Ventures and Merrill Lynch Investment Managers ("MLIM") Private
Equity Partners pursuant to which several of their funds will invest a total of
$25 Million in a convertible preferred private placement financing.
The proceeds will be used to advance MRU's growth strategy in the private
student loan market.
Mr. Edwin McGuinn, Chairman and CEO of MRU Holdings Inc, said "The funding from
Battery Ventures and MLIM Equity Partners is very important in the growth of our
company and will dramatically broaden the scope of our private student loan
program while increasing access to educational funding for students. We are
extremely pleased with the support from these two top tier investors."
"There is incredible demand for a highly efficient and scalable underwriting
engine for private student loans, and MRU has shown through its rapid
development that they have the technology and underwriting methodologies to meet
that demand," said Battery Ventures Partner, Michael Brown, who intends to join
MRU's Board of Directors. "The innovation in the industry continues at a rapid
pace, and we look forward to working with the MRU management team to execute the
strong growth trajectory and assist them in their strategy to scale to
high-volume production."
The closing of the transaction is subject to customary conditions. The
transaction is anticipated to close on or about February 10, 2006. The
definitive documentation for the Series B Preferred will be filed with the
Securities and Exchange Commission on Form 8-K, as required.
ABOUT MRU HOLDINGS, INC.
MRU Holdings, Inc. (OTCBB: MHOI) is a publicly traded specialty finance company
that profiles and provides students with funds for higher education using a
blend of current market credit practices as well as its own proprietary analytic
models and decision tools. The company has a renowned brand name
"MyRichUncle(TM)" and highly scalable origination infrastructure. The company
utilizes these assets to provide private and federal loans to students either on
a referral or principal basis. Additional information concerning MRU Holdings is
available at http://www.MRUHoldings.com
ABOUT BATTERY VENTURES
Founded in 1983, Battery Ventures is a leading venture capital firm focused on
investing in technology companies at all stages of growth from seed to later
stage and tech buyouts. The firm has invested in over 190 companies worldwide.
From its offices in Wellesley, MA and San Mateo, CA the partnership manages over
$2 billion in committed capital, including its new fund of $450 million. For
more information, visit www.battery.com
ABOUT MLIM PRIVATE EQUITY PARTNERS
MLIM Private Equity Partners is a division of Merrill Lynch Investment Managers
and focuses on investing in venture capital and leveraged buyout transactions
and funds. Merrill Lynch & Co. is one of the world's leading wealth management,
capital markets and advisory companies, with offices in 36 countries and
territories and total client assets of approximately $1.7 trillion. Through
Merrill Lynch Investment Managers, the company is one of the world's largest
managers of financial assets. Firm wide, assets under management total $524
billion. For more information please visit http://www.ml.com.
Safe Harbor Statement
The information provided herein may include forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934. Such forward-looking statements include, MRU
Holdings' expectations regarding its ability to develop and commercialize
financial products for the higher education marketplace. Such forward-looking
statements involve risks and uncertainties that, if realized, could materially
impair MRU Holdings' results of operations, business, and financial condition.
These forward-looking statements may be affected by the risks and uncertainties
inherent in the educational finance market and in MRU Holdings' business. This
information is qualified in its entirety by cautionary statements and risk
factor disclosures contained in our Registration Statement on Form SB-2 filed
with the SEC on March 22, 2005, as further amended. MRU Holdings cautions that
certain important factors may have affected and could in the future affect MRU
Holdings' beliefs and expectations and could cause actual results to differ
materially from those expressed in any forward-looking statements made by or on
behalf of MRU Holdings. The forward-looking statements contained herein are made
as of the date hereof and MRU Holdings does not assume any obligation to update
the reasons why actual results could differ materially from those projected in
the forward-looking statements.
MHOIG
Contact:
Edwin Mc Guinn
Chairman & CEO of MRU Holdings, Inc.
212-836-4195
emcguinn@mruholdings.com