NEW YORK, March 8 /PRNewswire-FirstCall/ -- MRU Holdings Inc. , a specialty finance company that provides federal and private student loans through its consumer brand MyRichUncle(TM), today announced that Nomura Holdings has entered into a definitive securities agreement to convert and sell approximately 1.5 million warrants to institutional investors for an undisclosed total consideration. The net proceeds to MRU Holdings of $5.1 million will be used to advance the Company's growth strategy in the student loan market.
This transaction is the last in a series of transactions begun in the fall of 2006 and upon closing the transaction Nomura will no longer have an equity position in MRU Holdings. MRU Holdings has been working with Nomura to reduce their equity position in the Company as part of its strategic plan to enhance the capitalization of MRU Holdings.
"Nomura has been a supportive equity investor in the Company for the past two years, and will continue to provide a secured credit facility for the origination and warehousing of MyRichUncle's growing private student loan portfolio," said Edwin McGuinn, Chairman and CEO. "As in the recent transaction with Nomura, proceeds will be used to broaden product innovation to meet the education financing needs of our growing customer base, as well as expand our marketing and talent recruitment efforts."
About MRU Holdings, Inc.
MRU Holdings, Inc. is a publicly traded specialty finance company that 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. MRU distinguishes itself from the competition as it does not take a "one-size fits all" approach to designing student loan products, allowing itself and its marketing partners to create a student loan offering that directly addresses their specific customer needs. Additional information concerning MRU Holdings is available at http://www.mruholdings.com/.
About MyRichUncle From its inception in 2000, MyRichUncle has been at the forefront of innovation for education finance, most recently focusing on the growth market of student loans. Since May of 2005, MyRichUncle has originated more than $145 million private and federal student loans using its breakthrough underwriting platforms and innovative technology to deliver competitively priced products and services to borrowers. In May 2006, the Company launched Preprime(TM), the first and only student loan that allows students to qualify for loans based on individual merit, rather than credit history alone. In June 2006, MyRichUncle launched its Federal student loans with upfront interest rate reductions at repayment. Dedicated to reshaping the student loan industry to function in the best interests of students, founders Vishal Garg and Raza Khan and their team are committed to delivering the most innovative solutions for their customers. The Company and its founders have been recognized by Fast Company's Fast 50 (2006) and listed among BusinessWeek.com's Tech's Best Young Entrepreneurs (2006). For more information, visit http://www.myrichuncle.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 involve risks and uncertainties that, if realized, could materially impair the Company's results of operations and/or its financial condition. These forward- looking statements may be affected by the risks and uncertainties inherent in the educational finance market and in the Company's business, as disclosed by the risk factors contained in our 10-KSB for the fiscal year ended June 30, 2006. The Company cautions that certain important factors may have affected and could in the future affect the Company's 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 the Company. The forward- looking statements contained herein are made as of the date hereof and the Company does not assume any obligation to update the reasons why actual results could differ materially from those projected in the forward-looking statements.
MHOIF
